Solana’s price has seen an impressive surge of over 10%, crossing the $200 mark, following a notable $55 million transfer made by Pump.fun to the Kraken cryptocurrency exchange. This price jump comes on the heels of a slight dip to $189 around 5:00 p.m. UTC on January 1. Just an hour later, the price began its upward trajectory, aligning perfectly with the high-value transfer activity.
Pump.fun executed two major transactions on that day. The first involved transferring $22.8 million in SOL at 4:37 p.m. UTC, followed by a $32.7 million transfer at 5:45 p.m. UTC, as reported by Solscan. So far this year, Pump.fun has deposited over $303 million worth of SOL to Kraken and sold more than $41 million of these tokens, creating a steady sell pressure in the market.
The optimism surrounding Solana is also driven by speculation regarding the possible approval of a U.S. spot Solana ETF. According to data from Polymarket, there’s a 76% chance of approval occurring before the end of 2025. Analysts believe that such news could drastically impact Solana’s price, potentially pushing it closer to $400. Notable asset managers like Grayscale, VanEck, 21Shares, Bitwise, and Canary Capital are all vying to be the first to launch a U.S. spot Solana ETF.
In November 2024, the U.S. Securities and Exchange Commission (SEC) formally accepted these ETF applications for review. Grayscale’s application is on a tight deadline with a decision expected by January 23, 2025; others are anticipated to see outcomes by January 25.
Internationally, Brazil made strides by approving its first Solana ETF on August 7, 2024, setting a significant example for other markets. This development has bolstered Solana’s market appeal, causing its price to climb to $230 on December 11 as anticipation grew around potential ETF developments. Bitwise has even set an ambitious price target of $750 for SOL, illustrating the prevailing bullish sentiment.
Alejo Pinto, the founder of the Solana layer-2 network Lumio, pointed out the potential impacts of ETF approval in the U.S. on the market. Pinto shared, “Since it is still very uncertain, an ETF approval in the U.S. would have a positive price impact on Solana since the probability is low and therefore not yet priced in.”
The convergence of Pump.fun’s transactions, marketplace optimism surrounding ETFs, and global regulatory advancements continues to influence Solana’s price dynamics. Investors remain attentive to these critical developments as Solana carves out its path in a competitive market.
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