ETF boost? Will SOL soon return to $180? SOL rose 13% in 2 days from July 14 to July 16, breaking through the $160 resistance level for the first time in five weeks. However, the price of SOL is still 24% below the high of $209 in March.
SOL's recent popularity can be attributed to the final stage of Ethereum exchange-traded fund (ETF) approval. According to Bloomberg analyst Eric Balchunas, the U.S. Securities and Exchange Commission (SEC) has issued final instructions to asset management companies to prepare for the launch on July 23. VanEck and 21Shares submitted similar Solana ETF applications on July 8, but the SEC is expected to make a final decision in March 2025.
Due to the network's low issuance and transaction fees, a large part of the Solana ecosystem is composed of memecoin. This has led to the success of memecoins like BONK and DogwifHat (WIF), which have peaked at $2.8 billion and $4.8 billion in market caps, respectively. More importantly, Solana has been able to build an active and engaged community that is difficult to replicate.
Multiple Solana SPL memecoins have seen impressive growth over the past seven days, including MICHI (up 71%), POPCAT (up 70%), MYRO (up 36%), and TRUMP (up 30%). These moves have incentivized new investors to join, subsequently increasing demand for SOL tokens due to increased activity in decentralized applications (DApps) and greater liquidity in the Solana ecosystem, including its Total Value Locked (TVL).
