đ„ČSolana Faces Instability Following Ethereum ETF Approval Rumorsđ
đŻAfter rumors circulated about the potential approval of an Ethereum ETF, Solanaâs charts began to show signs of decline. Bloomberg analysts had hinted at a 75% chance of the ETF approval, which materialized shortly after. This news drove Solanaâs price down to a low of $163.38. Since then, the price has recovered slightly and is currently trading at $169.70, with a market cap of $76.26 billion. However, trading volume has decreased significantly, down by 56% from previous levels.
đIn response to the Ethereum ETF approval, Solanaâs Proof of Stake (PoS) validators initiated an un-staking spree, resulting in the unstaking of 3.5 million Solana tokens between May 20 and 24. These tokens are now valued at over $594 million, while the remaining staked SOLs total 365.3 million.
Historically, such a substantial reduction in staking can introduce temporary instability to PoS networks like Solana.
âïžSolana Faces Selling Pressure Amid Ethereum ETF Impact
đSolana is currently experiencing a correction phase after encountering overbought conditions earlier this week, exacerbated by the Ethereum ETF news triggering selling pressure. Despite this, Solanaâs price has begun to recover, showing a 2.5% increase in recent trading sessions. Market sentiment suggests potential further gains as the hype around the Ethereum ETF settles.
The discussion around a potential Solana ETF has already started among crypto leaders and companies, underscoring its significance as one of the largest cryptocurrencies by market demand after Bitcoin and Ethereum. However, Ethereumâs dominance continues to influence Solanaâs price dynamics, prompting investors to cautiously navigate market movements to maximize profits amid uncertainty.
Disclaimer:This article is just for information not financial advise