Solana
Matrixport’s Daniel Yan sees Solana as the next big ETF competitor
As the crypto market eagerly awaits the potential approval of a Spot Ethereum ETF by the US SEC, Matrixport co-founder Daniel Yan has triggered discussions on the implications for Solana (SOL). Yan’s ideas suggest that, following Ethereum’s lead, Solana could become the next major player in crypto. Yan suggests that investors consider buying Solana against Ethereum due to several factors.
Solana as the next ETF candidate
First, he notes that Solana could be the next cryptocurrency in line for ETF approval, following the potential approval of an Ethereum ETF. This is based on the historical trend seen in the market, where the approval of a Bitcoin ETF has led to increased attention and investment in Ethereum. Applying this model to Solana, Yan believes that if Ethereum receives ETF approval, it could pave the way for similar attention to Solana, which could drive its price higher.
Second, Yan points out that historically, the price of Ethereum has seen significant gains following the approval of a Bitcoin ETF. Following this logic, he suggests that buying Solana against Ethereum could be a lucrative trade, especially since Solana’s price surge could be less intense than Ethereum’s recent rally. This suggests that there could be more potential for significant gains for Solana than for Ethereum, especially if investors begin to focus on Solana following positive market developments in Ethereum.
This information comes at a time when leading analysts have increased their Ethereum ETF approval estimates to 75%, signaling strong regulatory progress. The anticipation of an Ethereum ETF not only drove up the price of Ethereum, but also had a positive impact on the broader altcoin market, including Solana.
Why is Solana standing?
With possible ETH ETF approval buzz, Solana is flying high. Recently, Solana price made a significant breakthrough, rising from $170 to $180 and potentially aiming for $200 soon. This price increase is accompanied by a notable increase in trading volume, indicating strong buying pressure. Breaking above $170 has overcome a key resistance level, suggesting the bulls are taking control. Solana also broke above the 50-day and 200-day moving averages, signaling an uptrend. Widening Bollinger bands indicate increased volatility and potential for further gains.
Additionally, on-chain data supports this bullish outlook. The number of new addresses on the Solana network has continued to increase, reflecting growing interest and adoption. In May 2024, the number of new addresses continues to increase, showing more users joining the network.
With this speed, will we have the Solana ETF by 2025? Only time will tell.