The Solana (SOL) price is on the rise. In the past 24 hours, the digital currency rose 20.7% and appears on track to re-challenge the all-time high (ATH) of two months ago. Analysts are optimistic and predict that this upward trend can continue.
Launch of Trump’s memecoin
One of the biggest drivers behind the recent surge is the launch of OFFICIAL TRUMP, a new memecoin launched on the Solana network. The coin, which has achieved enormous popularity in a short time, now has a market capitalization of more than $4 billion.
This massive increase has captured the attention of both retail and institutional investors and is driving a significant increase in demand for SOL as the memecoin leverages the Solana ecosystem.
Whale activity and DeFi deposits
On-chain data shows that several factors are contributing to the recent price increase. For example, a large whale recently purchased a significant amount of SOL. A total of $30 million in SOL was involved, of which 144,817 tokens were deposited in Kamino, a Solana-based decentralized finance (DeFi) platform.
Additionally, the same investor has lent $20 million worth of stablecoins using SOL as collateral instead of selling the tokens. This indicates that the whale is confident of further price appreciation and is speculating on long-term profitability.
Open interest rises on derivatives market
The growing interest in Solana is also visible on the derivatives market. According to data from CoinGlass, open interest in Solana futures rose 9% to a value of $6.77 billion. Furthermore, total liquidations in the past 24 hours reached $15.7 million.
Most of this came from short positions: a whopping $9.21 million worth of shorts were closed, forcing these investors to buy SOL. This created additional buying pressure and helped push the price up further.
ETF speculation as a driving force
Finally, rumors about the launch of a Spot Solana exchange traded fund (ETF) play a major role. Under a possible re-election of Donald Trump, experts expect the approval of various crypto ETFs to accelerate. A Spot Solana ETF could attract significant capital flows.
Analysts at JPMorgan estimate that such an ETF could generate between $3 billion and $6 billion in investments. This could potentially push the SOL price towards $500 to $750, a scenario that reinforces the current bullish mood.
Claim €10 free today and pay no trading fees on the first €10,000!
Grab this unique opportunity with Newsbit and Bitvavo by creating an account now via the button below. Deposit just €10 and immediately receive €10 free. In addition, you can trade your first €10,000 in trades for 7 days without any fees. Start today and benefit immediately from the growing popularity of crypto!
Create your account and claim your €10 free.
Don’t miss this opportunity to immediately benefit from the growing popularity of Crypto!
Source: https://newsbit.nl/solana-koers-stijgt-plotseling-met-10-procent-dit-is-waarom/
