ETFs have changed everything:
The SEC rejected two Solana spot ETF 19b-4 applications submitted by Cboe BZX,
VanEck and 21Shares Solana ETF's 19b-4 forms were removed from the CBOE website as early as the 17th, which has a clear impact on the confidence of $SOL in the future.
What happened at the same time:
Bitcoin (BTC) and Ethereum (ETH) have lost their self-sustaining narratives,
and are now completely subject to traditional financial (TradFi) buying. Unless there is a strong macro narrative to attract large institutional buyers, buying may continue to be weak.
In addition, the current price volatility in the crypto market is volatile and lacks a clear narrative. Coupled with the current stage of the US economic cycle, macro factors have become the main driver of market behavior. We have linked the cryptocurrency market to broader economic conditions, hoping that monetary easing policies will bring relief. Dependence on the macro economy means that we are more responsive to external forces rather than internal innovation or narratives, which makes the crypto market more susceptible to volatility driven by decisions outside the crypto field.
Whether Trump and Harris will fulfill their promises in the race is uncertain. In addition, whether the government will confiscate Bitcoin or some large Defi, L1, and L2 assets is also uncertain.
We are also not optimistic internally. Even if the ETF has been launched, we still expect traditional buying rather than active investment in ETFs. On the contrary, buyers continue to enter the Solana casino and are plundered by the community, psychology, and price manipulators of MEME coins.
You will find that even though MEME is hot, no exchange is willing to list them, whether it is celebrity MEME or animal MEME.
We urgently need a new narrative to explode: modularization, RWA, interoperability, re-staking AWS, and a new generation of L1.
