In the cryptocurrency market, news and updates can significantly impact the price of various digital assets. Recently, Solana’s (SOL) price experienced a notable increase following a $55 million transfer from Pump.fun’s fee account to the Kraken exchange.
Solana Price Rebounds After Dip to $189
On January 1st, around 5:00 pm UTC, Solana’s price plummeted to $189. However, its price began to rise at approximately 6:00 pm UTC after a significant transfer of SOL tokens from Pump.fun’s fee account to the Kraken exchange.
$55 Million Transfer to Kraken
The memecoin launch platform, Pump.fun, made two deposits to Kraken on January 1st. The first transaction involved transferring $22.8 million worth of SOL at 4:37 pm in UTC, while the second transfer, worth $32.7 million, occurred at 5:45 pm. This data was obtained from Solscan.
Pump.fun’s Impact on Solana’s Price
In 2024, Pump.fun has significantly contributed to sell pressure on Solana. According to Lookonchain data, the memecoin launch platform has deposited over $303 million worth of SOL to Kraken and sold more than $41 million worth of SOL tokens.
Growing Anticipation for a US Spot Solana ETF
The approval of a spot Solana exchange-traded fund (ETF) in the United States is gaining significant attention. According to Polymarket, the likelihood of a US spot Solana ETF stands at 76%. This increasing anticipation has sparked a debate on whether Solana’s price may hit $400 in 2025.
Historical Chart Patterns and ETF Approval
Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 network Lumio, stated that an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in. This sentiment is shared by other experts who believe that a US spot Solana ETF will be approved before the end of 2025.
Companies Vying for Spot Solana ETF Approval
Several asset management giants, including VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, are vying for spot Solana ETF approval. The deadline for Grayscale’s application is January 23rd, while the four other applicants expect a preliminary decision by January 25th.
Brazil’s First Solana ETF Sets Precedent
On August 7th, Brazil approved its first Solana ETF, setting a precedent for other global jurisdictions. This development has fueled growing anticipation among traders for a US spot Solana ETF, which may have contributed to Solana’s price recovery above $230 on December 11th.
Conclusion
In conclusion, the recent transfer of SOL tokens from Pump.fun’s fee account to Kraken and the growing anticipation for a US spot Solana ETF have significantly impacted Solana’s price. While the likelihood of an ETF approval in the US stands at 76%, experts believe that it will have a positive price impact on Solana. As we move forward into 2025, investors should closely monitor developments surrounding a US spot Solana ETF and its potential impact on Solana’s price.
Solana: Expectation Versus Reality
As the cryptocurrency market continues to evolve, it is essential for traders and investors to stay informed about the latest developments. The approval of a US spot Solana ETF may bring significant benefits to Solana’s price, but it also poses risks for those who fail to adapt to changing market conditions.
Magazine: Comeback 2025: Is Ethereum Poised to Catch Up with Bitcoin and Solana?
In our latest magazine issue, we explore the resurgence of Ethereum in the cryptocurrency market. With its growing adoption and innovative applications, is Ethereum poised to catch up with Bitcoin and Solana? Read more about it in our magazine.
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Key Takeaways:
- Solana’s price rebounded after a $55 million transfer from Pump.fun’s fee account to Kraken.
- Growing anticipation for a US spot Solana ETF may have contributed to Solana’s price recovery above $230.
- The likelihood of an ETF approval in the US stands at 76%, according to Polymarket.
- Companies such as VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital are vying for spot Solana ETF approval.
- Brazil’s first Solana ETF set a precedent for other global jurisdictions.
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Disclaimer:
This article is for informational purposes only and should not be considered as investment advice. The information provided is based on publicly available data and may not reflect the actual market conditions or trends. Investing in cryptocurrencies carries significant risks, including but not limited to price volatility, regulatory changes, and security threats. It is essential to do your own research and consult with a financial advisor before making any investment decisions.
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