- The price of Solana is set for a breakout amid a boost in stablecoin valuation on its chain.
- Potential Solana ETF approval odds have also shifted its price growth sentiment.
The popular alternative cryptocurrency Solana (SOL) has crossed the $150 psychological level amid a recent market recovery. Solana is set to see a more bullish rally as the stablecoin market hit $13 billion and improved prospects of a SOL ETF launch.
Surge in Solana Stablecoin Activity
The value of stablecoins built on the Solana blockchain has increased steadily since early February. Data from DefiLlama reveals that the stablecoin market capitalization is currently pegged at $13.06 billion.
Such stablecoin activity boosts network usage and the value of the SOL coin. It also indicates a bullish outlook and can attract more users to the ecosystem, driven by Decentralized Finance (DeFi), memecoins, and payment use cases.
Meanwhile, analysts at Bloomberg Intelligence have increased the odds of regulators approving a SOL Exchange-Traded Fund (ETF) this year to 90%. With 11 filings, a slew of firms, such as Franklin Templeton, Bitwise, and WisdomTree, are vying to launch SOL-tied products.
As noted in our earlier post, Grayscale is the latest major player to join the Solana ETF race. This decision emphasizes the company’s efforts to ensure investors have regulated access to more cryptocurrencies.
The new SEC Chairman, Paul Atkins, must review the plethora of SOL filings before moving to the next approval stage. Besides Bloomberg analysts, Polymarket sees high odds of approving a Solana ETF in 2025.
Solana is far from the only major altcoin anticipated to get regulators’ approval this year. Top firms have applied to the US Securities and Exchange Commission (SEC) to list similar products for XRP, Litecoin (LTC), and Dogecoin (DOGE).
Bloomberg analysts predicted a 90% ETF approval odds for LTC, 85% for XRP, and 80% for DOGE and Hedera (HBAR). The eventual approval of an SOL ETF would allow investors to trade the asset on a regulated securities exchange. It would give investors an efficient and safe method of investing in Solana without purchasing the asset directly.
Solana Price Analysis and Forecast
Last week, the price of Solana faced rejection around its daily resistance level of $160. It dropped 5% over the next five days, finding support around its 50-day EMA at $140.30 on Wednesday. The price peaked in today’s morning trade, surging to around $149.
At the time of this writing, SOL was traded for $152, demonstrating a 4.5% increase in the last 24 hours. The market cap rose to $78.7 billion while the daily trading volume soared by 28.2% to $3.3 billion. The rising trading volume further confirms investors’ optimistic sentiments in Solana.
Market analysts forecast that SOL could extend the rally to retest its next daily resistance at $177.66. This prediction is, however, based on the continuation of the 50-day EMA at $140.3 and SOL closing above $160.
