Predicting Solana ETF Approval
Cryptocurrency market maker GSR expressed optimism about Solana’s superior technology as well as changes in the U.S. political landscape and announced a long position on SOL in a report published on Thursday. The firm believes the Solana spot ETF could be the asset manager’s next crypto ETF push, following January’s Bitcoin spot ETF and an Ethereum spot ETF expected to launch this summer. (The report preceded asset manager VanEck’s Solana ETF filing.)
Analysts at GSR wrote in the report:
“Change has begun with Trump’s support for the cryptocurrency industry, which in turn has led Democrats to relax their stance on digital assets during the election year. Although the current legislative and regulatory environment is unlikely to support the launch of multiple spot Rules for digital asset ETFs, but the Trump administration and the liberal SEC commissioners may do so, and with the advancement of the bill to determine the structure of digital asset markets for securities and commodities, real possibilities will be opened.”
According to GSR’s scoring criteria, Solana’s market demand and degree of decentralization make it expected to become the cryptocurrency to launch an ETF after Bitcoin and Ethereum.
Solana Technical Advantages
In addition, GSR also listed three core reasons why Solana’s technology has a competitive advantage. The first is Solana’s “Proof of History” (PoH) technology.
“This technology is similar to how cell towers alternately send signals when communicating to avoid interfering with each other. In Solana’s network, each node (or validator) can independently generate blocks when it is its turn without the need for Waiting for other nodes to agree on the current block state brings huge advantages in speed and scalability.”
Secondly, Solana's blockchain technology significantly improves the network's processing power (ie, throughput) by allowing "parallel transaction processing." This approach takes advantage of the main way to speed up modern computing technology: increasing the number of processor cores rather than simply improving the performance of each core.
Finally, GSR noted that Solana’s “historically high hardware and bandwidth requirements optimize for speed and security,” but at the expense of decentralization. However, as costs decrease, Solana has the potential to solve the "impossible triangle of blockchain" in the future and ultimately realize the vision of synchronizing global status at the speed of light.
SOL Price Forecast
As for the native token SOL, GSR pointed out that from October last year, Bitcoin rose from US$27,000 (that is, when "market participants began to believe that the possibility of US spot ETF approval was very high") to the current level of about US$63,000, an increase of 2.3 times. GSR estimates:
“Solana could grow 1.4x under a bear liquidity scenario, 3.4x under a sideways scenario, and 8.9x under a bull market scenario. Additionally, there is reason to believe that the impact could be higher than these estimates because, unlike BTC, SOL is actively used in staking and decentralized applications, and the relationship between relative liquidity and relative size may not be linear. ”
This article is optimistic about technical advantages and ETF bullishness! Market maker GSR announced a long position on SOL and is expected to outperform Bitcoin. The post appeared first on Zombit.