💥 Solana ETF Hopes, Rising Fundamentals Are Driving SOL Prices Higher, Traders Say
Increased transactional activity on Solana-based applications and a surge in the total value locked (TVL) on the network have contributed to Solana's recent outperformance.
Expectations of a possible exchange-traded fund (ETF) product and easing regulatory policies under a potentially crypto-friendly Trump administration have further boosted Solana's appeal among investors.
Solana’s SOL tokens have gained over 18% in the past week, outpacing larger cryptocurrencies bitcoin (BTC) and ether (ETH), to trade over $180 early Monday, setting a new three-month high.
Some market observers said SOL gained as trading activity on Solana-based applications grew in the past few weeks, boosting fundamentals.
“The Solana ecosystem is showing robust growth, evidenced by increased DEX activity, rising daily active users, and growing fee accrual to the network,” shared Pat Doyle, a blockchain researcher at Amberdata. “These strong fundamentals, coupled with the positive market sentiment, are pushing SOL forward.”
Data tracked by DefiLlama show that the total value locked (TVL) of tokens on Solana has increased over 25% in a month, crossing the $5.28 billion mark to levels last seen in April 2022. The network has made at least $1.5 million each day since June while netting over $2 billion in on-chain trading volumes each day for the past week.
Solana’s key appeal among traders is its fast settlement speeds and low fees. That's been the basis for meme coin trading frenzies several times in the past year.
In comparison, Ethereum, the world’s largest blockchain by TVL of $60 billion, recorded smaller volumes at $1.7 billion, but higher fees at $3 million because it's more expensive for users.
Easing regulatory policies are adding to SOL’s appeal among professional investors, said Rennick Palley, founding partner at crypto venture fund Stratos.
