Matrixport’s Daniel Yan Eyes Solana as the Next Big ETF Contender
Qadir AK21 May 20242 min read
As the crypto market eagerly awaits the potential approval of a Spot Ethereum ETF by the U.S. SEC, Matrixport co-founder Daniel Yan has sparked discussions about the implications for Solana (SOL). Yan’s insights suggest that, following Ethereum’s lead, Solana could emerge as the next major player in the crypto space. Yan suggests that investors consider buying Solana against Ethereum due to several factors.
Solana as the Next ETF Candidate
Firstly, he notes that Solana could be the next cryptocurrency in line for ETF approval, following the potential approval of an Ethereum ETF. This is based on the historical trend observed in the market, where approving a Bitcoin ETF led to increased attention and investment in Ethereum. Applying this pattern to Solana, Yan believes that if Ethereum receives ETF approval, it could pave the way for similar attention toward Solana, potentially driving its price higher.
Secondly, Yan points out that historically, the price of Ethereum has experienced significant gains after the approval of a Bitcoin ETF. Following this logic, he suggests that buying Solana against Ethereum could be a lucrative trade, especially considering that Solana’s price surge may be less crowded than Ethereum’s recent rally. This suggests that there may be more potential for significant gains in Solana than Ethereum, especially if investors begin shifting their focus to Solana following positive developments in the Ethereum market.
These insights come at a time when senior analysts have raised their estimates for Ethereum ETF approval to 75%, signaling strong regulatory progress. The anticipation of an Ethereum ETF has not only boosted Ethereum’s price but has also positively impacted the broader altcoin market, including Solana.
Why Solana is Up?
With possible ETH ETF approval buzz, Solana is flying high. Recently, Solana’s price has made a significant breakthrough, rising from $170 to $180 and potentially aiming for $200 soon. This price increase comes with a notable rise in trading volume, indicating strong buying pressure. The move past $170 overcame a key resistance level, suggesting that bulls are gaining control. Solana has also moved above the 50-day and 200-day moving averages, signaling a bullish trend. The widening of the Bollinger Bands indicates increased volatility and potential for further gains.
Plus, on-chain data supports this bullish outlook. The number of new addresses on the Solana network has been steadily increasing, reflecting growing interest and adoption. In May 2024, the number of new addresses is continuing to rise, showing more users joining the network.
With this speed, Will we get Solana ETF by 2025? Only time will tell.
