Solana’s SOL tokens have experienced a remarkable surge, gaining over 18% in the past week and trading above $180 early Monday, marking a new three-month high.
TakeAway Points:
- In the last week, Solana’s SOL tokens saw a spike of over 18%, culminating at $180, thanks to heightened transaction volume and optimism about ETFs.
- A 25% month-over-month increase in Solana’s total value locked (TVL) to $5.28 billion suggests robust network fundamentals.
- Investor enthusiasm is rising due to loosening regulations and possible ETF listings, setting SOL up for further profits.
Solana’s SOL token surges
This outperformance has outpaced larger cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Several market observers attribute this rise to increased transactional activity and the growing anticipation of a possible exchange-traded fund (ETF) product. Pat Doyle, a blockchain researcher at Amberdata, noted, “The Solana ecosystem is showing robust growth, evidenced by increased DEX activity, rising daily active users, and growing fee accrual to the network.”
Supporting this growth, data from DefiLlama indicates that the total value locked (TVL) of tokens on Solana has surged by over 25% in a month, crossing the $5.28 billion mark, levels last seen in April 2022. The network has consistently made at least $1.5 million each day since June and has netted over $2 billion in on-chain trading volumes daily for the past week. Solana’s appeal lies in its fast settlement speeds and low fees, which have driven meme coin trading frenzies multiple times in the past year.
Perspectives on Regulation and the Market
Easing regulatory policies have also contributed to Solana’s appeal among professional investors. Rennick Palley, founding partner at crypto venture fund Stratos, stated, “The recent pump is due to overall market sentiment improving and increasing odds that it and its ecosystem tokens won’t be viewed as securities by the Trump admin.” This sentiment is bolstered by the anticipation of the upcoming ETH ETF launch, which has positively impacted SOL.
“SOL appears poised to be the next token with an ETF, which, given its relatively small size and strong price performance, would be extremely bullish,” Palley added.
In early July, the Cboe submitted 19b-4 filings with the Securities and Exchange Commission (SEC) to list VanEck’s and 21Shares’ potential spot Solana ETFs, initially filed in late June. This regulatory development has further fueled optimism around Solana’s future prospects.
Market manipulation and meme coins
Meme coins like Popcat (POPCAT) and Mog (MOG) have also seen significant gains, driven by the cat-themed narrative and their usage as beta bets by some traders. Popcat briefly topped $1 billion in market capitalization after a single $630,000 purchase late Sunday. Meanwhile, Ethereum-based MOG rose 8% to a $960 million capitalization, setting a new lifetime peak. These tokens have rallied alongside Solana’s SOL and Ethereum’s ETH, reflecting their role as leveraged bets on the growth of their underlying blockchains.
However, the surge in Popcat’s market capitalization has raised concerns about possible market manipulation. A Polymarket user, @The_Guru55, commented, “Okay so this is interesting because that’s clearly market manipulation, but technically it did cross $1 billion on 1 website. Someone here with a vested interest in Popcat has manipulated the market and pushed it over.” Despite these concerns, Polymarket’s resolution remains in place and has not been disputed.
