Solana (SOL) has gained 35% in 2024 and is now the fifth-largest cryptocurrency by market capitalization. Last week, asset manager VanEck filed for the first SOL spot ETF in the United States, and 21Shares quickly followed suit. The news was enough to make SOL one of the top-20 performing cryptocurrencies over the past seven days.
Source: TradingView
Tristan Frizza, founder of decentralized exchange Zeta Markets, sees a favorable July for Solana and the cryptocurrency market in general.
“Despite recent market volatility, the overall crypto macro outlook looks strong and we expect positive trends to emerge in the coming months.”
Frizza highlighted that Bitcoin’s dominance rate has dropped by more than 5% over the past few days, from 52.8% on June 25 to around 50.8% at the time of writing, a move that typically encourages market diversification, prompting investors to explore other digital assets.
Therefore, in this favorable context, the founder of Zeta Markets claims that Solana is about to become the third largest cryptocurrency by market capitalization due to its “unparalleled ability to process large transaction volumes with low fees, real-world use cases, and extremely dynamic ecosystem.”
“This is an ideal environment for both retail and institutional investors, especially after VanEck filed the first Solana ETF. This milestone clearly shows that SOL is the next candidate for an ETF after BTC and ETH. It also opens up the possibility of SOL being classified as a commodity,” he added.
While it may take some time to get a spot SOL ETF approved, this boosts the positive outlook for the Solana ecosystem, which will “undoubtedly” continue to drive more interest and usage.
“Overall, potential crypto-friendly regulators could be a driver for the market,” Frizza concluded.
Itadori
According to Cryptobriefing
