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The price of Solana (SOL) has been on a tear lately, surging in recent weeks to trade at more than $180 on Monday – higher than its been in the past three months. This rally is being fueled by a combination of factors, including growing anticipation surrounding a potential Solana-focused exchange-traded fund (ETF) and strong growth in activity on the Solana network itself. Analysts say this confluence of positive developments is attracting both retail and institutional investors to SOL, pushing its price higher.
The possibility of a Solana ETF has been a major driver of excitement in the market. Investors are hopeful that a regulated ETF would make it easier for traditional finance institutions and mainstream investors to enter the crypto market and gain exposure to SOL. This potential influx of new capital could significantly boost demand for SOL, driving its price even further upwards.
Adding fuel to the fire, the Solana network itself has been experiencing a surge in activity. Transaction volumes and daily active users have both been climbing steadily, indicating growing adoption and real-world use cases for the Solana blockchain. This strong network effect is bolstering investor confidence in Solana’s long-term potential, further amplifying the positive sentiment surrounding SOL.
A final factor in SOL’s favor is the upcoming, with some believing that politicians will do right by crypto in order to earn the community’s votes.
The effect of SOL’s multiple boons is being felt and noticed in the market. According to CoinDesk, DefiLlama is showing an increase in the total value locked of tokens on the SOL network of 25% a month, surpassing levels not seen since April 2022.
In fact, SOL is trading even more than Ethereum over the past week, a feat many altcoins don’t achieve – and one that’s of particular interest considering the first Ethereum ETFs will be launching soon. It demonstrates just how much draw SOL currently has as investors are flocking to the hyper-efficient and low cost network and its wealth of dApps.
