🌎 Solana Price Rises as Spot ETF Prospects Increase

Solana price experienced a slight uptick on Wednesday as the prospect of a spot ETF gained traction following Ethereum’s approval earlier this week.

Solana, the fifth-largest cryptocurrency, saw its value rise to $176, just below its weekly peak. With a market cap exceeding $82 billion and an average daily trading volume of $2.9 billion, Solana stands out in the crypto market.

Interest in Solana ETF

Crypto analysts suggest that Solana could be the next cryptocurrency to secure a spot ETF, given its significant role in the industry. Solana’s utility is notable, especially in the realm of meme coin development. Its decentralized exchanges manage billions in assets monthly, and it’s been chosen by Hamilton Lane for its tokenized fund.

Moreover, key players in the decentralized public infrastructure (DePIN) sector, like Helium and Hivemapper, operate on the Solana blockchain.

VanEck was the first financial services firm to apply for a Solana spot ETF a few months ago. Franklin Templeton, managing over $1.5 trillion in assets, has indicated plans to apply for Solana and additional ETFs soon. Companies like Bitwise, Blackrock, and Invesco are also expected to seek Solana ETF approvals.

The industry is proving lucrative for these companies. For instance, Blackrock’s Bitcoin ETF, with over $22 billion in assets and a 0.25% expense ratio, could generate over $55 million in annual revenue.

Solana’s Technical Analysis

Technically, Solana is near a key resistance level at $188.8, its highest point since May 21st. It has a strong support level at $121.48, a threshold it struggled to breach in the months of April through July.

Currently, Solana is trading above its 50-day moving average, indicating bullish control. The formation of a cup and handle pattern, a popular continuation signal, suggests that breaking above the $188.88 resistance could lead to further gains, potentially reaching the year-to-date high of $210.