Solana Surges 78% to $167 on ETF Interest and Network Activity

Solana, the high-speed blockchain, has surged to $167 this week, marking its highest level since May 29. This rally is indicative of a renewed investor appetite for the cryptocurrency, driven by several factors including increased network activity and the growing interest in exchange-traded funds (ETFs). The surge in Solana's price reflects a broader trend of intensifying investor interest in the cryptocurrency market, particularly in ETFs, which are seen as a more accessible and regulated way to invest in digital assets.

The recent price movement of Solana is not an isolated event but part of a larger trend of increased investor interest in the cryptocurrency market. The high-speed blockchain's surge to $167 this week is a testament to this growing appetite. The rally is driven by several factors, including increased network activity and the growing interest in ETFs. The approval odds for ETFs are improving, pushing fresh capital into centralized exchanges and signaling high growth crypto appetite. This trend is further supported by the transition of companies into Solana treasury vehicles, amassing significant amounts of SOL and operating validators to earn staking rewards. For instance, BIT Mining Limited has plans to raise $300 million to establish a SOL treasury, reflecting the strategic importance of Solana in the crypto market.

Solana’s rally occurred in a high-volume environment, with the 24-hour figure jumping to over $6.17 billion. As the overall industry’s market capitalization exceeds $3.6 trillion, the number of Solana transactions in the network increased by 32% over the last seven days to 590 million. Its transaction count was much higher than other top blockchains like Ethereum (ETH), Binance Coin (BNB), and Sui (SUI), combined. Solana’s active addresses jumped by 5.3% to 24.3 million, while the amount of fees generated jumped by 44% to $7.6 million. Its 30-day transaction count soared to over 2.1 billion.

The recently launched REX-Osprey SOL + Staking ETF continues gaining traction among investors as its assets have jumped. Its assets stood at over $72 million by Thursday, a good amount for a two-week ETF. The main benefit for the SSK ETF is that it offers an exposure to Solana and its accompanying staking rewards. StakingRewards data shows that Solana stakers receive a yield of about 7.5%.

Solana also jumped as its ecosystem did well, with its meme coins gaining traction. The market capitalization of all these coins has jumped to over $12.4 billion from the April low of $6 billion. Further, Solana’s stablecoin supply stood at $10.7 billion, while its addresses pumped by 15% to 3.4 million. The number of transactions and adjusted volume rose by 29% and 45%, respectively.

The daily timeframe chart shows that the SOL price bottomed at $94.3 in April and then bounced back. It moved to the top of the trading range of the Murrey Math Lines at $162. The Solana price jumped above the 50-day and 200-day moving averages, as well as the 23.6% Fibonacci Retracement level. It has also moved above the ascending trendline that connects the lowest point in April and June. Therefore, the token will likely continue rising as bulls target the key point at $187, the highest point in May. This target is about 15% above the current level. A break above that level will point to more gains, potentially to the Murrey Math Lines ultimate resistance at $200.

The growing interest in Solana is also reflected in the actions of companies like Upexi, Inc., which reported an 8.2% increase in its Solana holdings during June, with its treasury now holding 735,692 SOL. This move is part of a broader trend of companies transitioning into Solana treasury vehicles, amassing significant amounts of SOL and operating validators to earn staking rewards. The strategic importance of Solana in the crypto market is further highlighted by the actions of companies like BIT Mining Limited, which has plans to raise $300 million to establish a SOL treasury. This move reflects the growing interest in Solana as a strategic hedge against inflation and a vehicle for treasury diversification.