Solana Soars To $230 : ETF Anticipation Boosts Momentum

Solana, one of the major figures in the crypto sector, is once again at the center of attention. After a year marked by significant fluctuations, its native token, SOL, has shown a spectacular rebound. Indeed, it has surpassed the symbolic barrier of 230 dollars. This rebound has not gone unnoticed, as it occurs in a context where the market is in turmoil, fueled by speculation surrounding a potential approval of a Solana ETF in the United States. This prospect has triggered a renewed interest among investors, reinforced by bold forecasts, including a price target of 750 dollars set by Bitwise.

The Catalytic Effect of a Potential ETF and Optimistic Forecasts

On December 10, the SOL price recorded a spectacular increase of 13 %, reaching 230 dollars after having dropped to a low of 203.30 dollars just a few days earlier. This significant recovery is largely attributable to the optimism surrounding a possible approval of a Solana ETF in the United States. Such a development is perceived as a major advancement that could attract an influx of institutional investments. Bitwise, a provider of crypto financial products, highlighted this strategic issue in a post on the social network X (formerly Twitter) on December 11, 2024. This company indicates that “the acceptance of an ETF could revolutionize the adoption of Solana and make it more accessible.” At the same time, the company has set an ambitious target for SOL, estimating that its price could reach 750 dollars in the near future.

This renewed interest in Solana has also been bolstered by recent regulatory developments. The resignation of Gary Gensler, chair of the SEC, has rekindled hope for more favorable measures for the crypto industry in the United States, consolidating investor confidence. Furthermore, derivative market data indicates a more stable situation. Funding rates have decreased, while heavily leveraged positions have been liquidated, creating conditions deemed healthier for the market. These combined factors, along with the resilience of the Solana network, have enabled its native token to reach unexpected heights, marking a recovery that many deem promising for the months to come.

Increased Volatility and Emerging Structural Weaknesses

Despite the euphoria caused by the recent rise of SOL, some indicators temper this optimism. Firstly, on-chain transaction volumes on the Solana network recorded a 63 % decline during the week ending December 8. This drop, although it also affects other blockchains like Ethereum and Avalanche, raises questions about user engagement. Thus, this trend seems to reflect a temporary disinterest in SPL tokens, a segment particularly affected by this dynamic. For instance, tokens such as BONK and Dogwifhat respectively lost 9 % and 8 % of their value during the same period, while other projects like Jupiter and Wormhole experienced similar declines. These figures suggest that the recent surge in SOL prices may rely more on speculative movements than on sustainable fundamental adoption.

Moreover, the impact of strategies known as maximal extractable value (MEV), particularly sandwiching, should not be underestimated. These practices, which involve inserting transactions before and after a targeted operation to take advantage of price fluctuations, have exacerbated volatility in the Solana market. An analysis by WazzCrypto published on the X platform (formerly Twitter) on December 10 revealed that a single actor captured 50 % of the volumes of a token at its launch, leaving the majority of investors with significant losses. These behaviors profoundly affect confidence, especially among small investors who hesitate to expose themselves further. While Solana’s derivative markets show encouraging signs, such as stabilization of funding rates and reduction of excessive positions, these elements raise concerns about the sustainability of SOL’s recent rise and the underlying fundamentals driving this renewed interest.

Solana continues to impress with its ability to rebound and the opportunities it offers, particularly due to prospects such as a potential approval of an ETF and ambitious price forecasts. However, challenges abound. The drop in on-chain volumes and the impact of trading strategies like sandwiching highlight vulnerabilities that could hinder its progress. In this context, investors need to be cautious, carefully weighing opportunities against risks. While optimism may seem justified in the short term, the sustainability of this trajectory will depend on the evolution of fundamentals and the network’s ability to inspire sustained confidence in such an unpredictable market.