Coinbase: Solana Outperformed Due to Tech Advancements and ETF Filing
Solana (SOL) has outperformed major cryptocurrencies last week, with its value rising by 9% over the past seven days. In contrast, Bitcoin and Ethereum have seen declines of over 4% and 2%, respectively during the same period, according to CoinMarketCap data. Coinbase analysts David Duong and David Han attribute Solana's impressive performance to several catalysts specific to its ecosystem, including significant technological advancements and VanEck’s filing for the first spot Solana ETF in the U.S.
The analysts outlined several recent developments that have bolstered the Solana blockchain. One noteworthy innovation is ZK Compression technology, which could significantly reduce costs on Solana, particularly for large-scale token distributions. This technology promises to enhance the efficiency and scalability of the network, making it more attractive for various applications.
Additionally, Solana's Blockchain Links, or "blinks," represent another major advancement. This technology allows the embedding of Solana-specific actions into any website user interface, potentially transforming the user experience for Solana applications. This could lead to a more seamless and integrated user experience, driving further adoption of the Solana blockchain.
Moreover, the filing of an exchange-traded fund (ETF) by VanEck has added another layer of optimism around Solana. Matthew Sigel, head of digital assets research at VanEck, announced on X that the company had filed for the first Solana ETF in the U.S. Following this, 21Shares announced its application with the SEC for a spot Solana ETF. This development, regardless of its eventual outcome, is seen as a promising step that could bring more institutional interest and investment into Solana.
At the time of writing, Solana was trading at around $147.67, gaining 6.5% over the past 24 hours, according to CoinMarketCap data.