According to Cointelegraph, Solana is poised for substantial growth in 2025, driven by increasing interest from retail investors and the potential launch of a US-based Solana exchange-traded fund (ETF). Despite a recent dip below the $200 mark, Solana's financial outlook remains promising, largely due to retail investors' expectations of profit. Nicolai Søndergaard, a research analyst at Nansen, highlighted that Solana's perceived affordability makes it attractive to new investors who often mistake a cryptocurrency's per-unit price for its overall value. This misconception can lead to increased interest in Solana, as its price allows investors to purchase a whole coin, unlike Bitcoin or Ether, where the same amount would only buy a fraction.
Market capitalization, however, provides a more accurate measure of a token's value, adoption, and potential volatility. Analysts predict Solana's price could exceed $400, supported by historical patterns and the anticipation of the first US-based spot Solana ETF. The approval of Solana ETFs is expected by the end of January 2025, following President-elect Donald Trump's inauguration. Companies such as VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital are competing for approval. Grayscale's application deadline is January 23, with other applicants awaiting a decision by January 25, after the SEC accepted the ETF applications for review in November 2024.
A US Solana ETF could provide traditional investors, who lack centralized exchange accounts, with easier access to Solana. Søndergaard noted that while approval is likely in 2025, the timeline remains uncertain, drawing parallels to the approval processes for Bitcoin and Ether ETFs. Brazil's approval of its first Solana ETF in August has set a precedent for other jurisdictions. Solana's price surged above $230 in December, driven by trader anticipation for a SOL ETF and Bitwise's $750 price target. This article does not offer investment advice, and readers are encouraged to conduct their own research before making investment decisions.
