Bittime - Solana (SOL) priceis on a bullish trend since the third quarter of 2023. The price continued to rise and reached a peak of $210 on March 18, 2024.
Even though it fell slightly in April, SOL recovered quickly. A surge in meme coin trading on the Solana network and the potential approval of an Ethereum ETF pushed its price up 20% in the last 30 days.
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This article discusses the factors influencing the rise in SOL prices and whether the price could return to record highs.
Solana Price Movement Since Early 2024
A rapid increase in SOL prices occurred towards the end of September 2023. However, in early 2024 the price fell. But after the approval of the first Bitcoin ETF application by the US SEC, the market turned bullish and pushed the price of SOL to $105 before dropping slightly again.
Also read: Solana Price Prediction: Will Solana Continue to Soar Amid Falling Bitcoin Prices?
The price of this layer-2 token then rises gradually even though it fluctuates. Even after dropping below $100, the price managed to recover and surpass $200.
In mid-March 2024, SOL crossed the $200 mark and reached $210. However, its performance in April 2024 is different. The entire market experienced a downturn following the Israel-Iran conflict, which saw Bitcoin prices fall to their lowest level since February 2024.
As a result, the price of SOL also decreases. It wasn't until it reached $116 that SOL holders (bulls) took action to push the price up again, topping $150 in mid-May.
As the possibility of approval of the first Ethereum ETF grows stronger, the price of SOL, like other cryptocurrencies, is starting to show an increase.
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Factors Boosting Solana Price
Solana was once considered an underrated cryptocurrency. However, after the community slowly recovered, SOL price showed its best increase since its second bull run in 2021. Here are the factors driving its growth.
Also read: GameStop Phenomenon & Its Impact on Memecoin Solana
Possible Ethereum ETF Approval
It is estimated that there is a 75% chance for the SEC to approve most Ethereum ETF applications. In fact, there is speculation that Ethereum ETF products will start trading at the end of June.
This optimistic view is driven by recent regulatory actions and increasing recognition of Ethereum's important role in the crypto world. Thus, the approval of an Ethereum ETF would be a major change in regulation.
This makes SOL and other cryptos safe and easily accessible investment instruments for retail and institutional investors.
Bitcoin Revival
The rise in Bitcoin prices is one of the main reasons why Solana has performed well recently. The leading cryptocurrency is back above $70,000 following news of the imminent approval of an Ethereum ETF.
And when Bitcoin rises, other major assets follow. Solana, as the fourth largest cryptocurrency by market capitalization, also experienced a significant price increase.
Launch of SOL Staking Service for European Investors
On May 15, popular trading platform Robinhood announced its first crypto staking product, designed specifically for European customers. This step is an attempt by the trading platform to expand its cryptocurrency services to Europe due to legal problems in the United States.
Through the announcement, Robinhood stated that their customers in Europe can now stake Solana and receive 5% returns on the platform.
This staking service allows SOL holders to earn passive rewards by holding these tokens to support the network.
This new staking product increases investor confidence in Solana as its presence on leading trading platforms such as Robinhood validates the potential and stability of the token. This announcement further contributed to the increase in SOL prices.
Positive Sentiment towards Solana
Recently, sentiment towards Solana has been positive. This network has established itself as a good platform for project development, thanks to its low network costs and high throughput.
Additionally, various developments are taking place within the Solana ecosystem. Many decentralized applications (dApps) and meme coin projects have sprung up on the network.
The network is also gradually emerging as a Stablecoin hub. Between October 2023 to April 2024, Stablecoin activity on Solana increased by more than 1,770%. In March, Solana made headlines for surpassing Ethereum by reaching a weekly Stablecoin transfer volume of $364.7 billion.
According to Artemis, in the last 3 months, Stablecoin transfer volume on Solana grew 308.59% to $106.3 billion.
High Total Value Locked (TVL)
According to Defillama, Solana has a Total Value Locked (TVL) of $4.9 billion. This shows investors' confidence in the network and its potential for future growth.
Frenzy Meme Coin
Recently, many Solana-based meme coins have appeared in the market. These meme coins, especially Bonk, Dogwifhat, and Popcat, have shown strong price performance, even as the overall market declines.
Investor interest in the meme coin in recent months has increased trading activity on Solana, positioning it as one of the fastest-growing blockchain networks. As of May 23, 2024, the total market capitalization of Solana-based meme coins reached $8.29 billion.
Solana Price Prediction – Can SOL Return to Its Record High?
After experiencing a slight decline due to the general bearish trend in the cryptocurrency market, SOL has bounced back and is on track to reach the $200 level. The possibility of SOL reaching this price level is getting stronger with the emergence of news about the approval of an Ethereum ETF.
In response to this news, SOL jumped significantly, reaching $188 in the early hours of May 21. Meanwhile, before the Ether ETF speculation, SOL enjoyed a steady price increase.
Popular crypto trading analysis platform, 99Bitcoins, predicts that SOL could break the $200 mark in Q2 2024 if the market remains bullish.
Additionally, popular crypto analyst Jacob Bury once spoke about the potential for SOL to reach incredible price levels, giving more room for meme coins on the network to grow.
This prediction shows the possibility of SOL surpassing the $200 benchmark. Thus, SOL could return to near its record high of $259.
Please remember that price predictions are only speculation and cannot be confirmed. Investors should always do their own research before making an investment decision.
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Conclusion
Solana (SOL) price has shown a strong bullish trend in recent months. Factors such as the possible approval of an Ethereum ETF, the rise of Bitcoin, the launch of SOL staking services in Europe, positive sentiment towards Solana, high TVL, and the meme coin frenzy have contributed to the price increase.
Analysts predict that SOL could return to its record high of $259 if the market remains bullish. However, investors should always do their own research before making an investment decision.
How to Buy Solana (SOL) on Bittime
You can buy and sell Solana (SOL) in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Solana (SOL) is available on Bittime with the market pair SOL/IDR. To be able to buy SOL IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete guide on how to buy Solana (SOL) on Bittime.
Monitor price chart movements for Solana (SOL), Bitcoin (BTC), Ethereum (ETH) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
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Solana (SOL) Price Increase Today: What Caused It?
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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