Solana Surges 25.9% in Q2, ETF Launch Drives Price Above $160

Solana's market prices surged, breaking above $160, driven by the imminent launch of the Rex-Osprey Solana ETF with staking. This development, coupled with Robinhood's reintroduction of staking for SOL, has significantly boosted the cryptocurrency's value. The Rex-Osprey Solana ETF, designed to track Solana's performance while generating yield through on-chain staking, is set to launch as early as Wednesday. This ETF is the first of its kind in the US market, offering mainstream investors access to SOL staking. The approval odds for the ETF were high, with predictions of a launch by the end of July or by the end of 2025.

Robinhood's decision to bring back staking for SOL and ETH for US customers further fueled the rally. This move came after Robinhood delisted SOL in 2023 following a verdict on offering an unregistered security. The staking option, which may bring up to 7.42% in passive returns, was reintroduced just days after the platform announced SOL options trading. This addition to mainstream products may also pave the way for ETH-based products, where ETH is locked in the Beacon Chain smart contract and participates in generating block rewards.

As more SOL is consolidated in whale wallets, simple staking or liquid staking is becoming more attractive. The sudden rally in SOL led to large liquidations, with short positions being predominantly liquidated due to the rapid, unexpected price increase following the Rex-Osprey ETF approval. Despite the liquidations, the overall open interest in SOL increased rapidly, indicating a bullish sentiment among traders. The bullish scenario for ETF launches envisions SOL rallying above $200 and as high as $300.

Solana's ecosystem continues to draw attention with the next wave of meme tokens and the gradual expansion of lending. The network is also attractive for hosting fee-generating apps and being one of the venues with the highest on-chain economic activity. The recent price breakout follows a month-long price slide, as the asset prepares to close the month with minimal net gains. However, SOL still expanded during Q2, adding a net 25.9%.