Solana’s price has surged more than 10% to top $200 after $55 million in transfers. The surge comes amid growing speculation about a U.S. spot Solana ETF approval.
Solana surged over 10 percent to over $200 on Monday after a big transfer worth $55 million to the Kraken exchange, driven by the combination of activity in transfers from recent days along with swelling speculations around possibilities of approval to a U.S. spot SOL ETF. Analysts state that approval will send the cryptocurrency’s market position ever stronger, this time its prices are likely destined to reach $400.
Pump. Fun’s $55M Transfer Spurred the Solana Price Bounce
On January 1, 2025, the largest player on the SOL network, Pump.fun, made two significant transactions worth $55 million. The first was a SOL token transfer amounting to $22.8 million at 4:37 p.m. UTC. The second transfer was a $32.7 million transaction at 5:45 p.m. UTC that was transferred to the Kraken cryptocurrency exchange. The Kraken is normally the largest liquidity player in the Solana tokens.
The trades put the SOL price up to the high of around $200 after 5:00 p.m. UTC from around $189. That was a pretty strong recovery from an earlier drop in the price during the day, which many interpreted as some evidence that the market was turning at least in part due to significant transfer activity.
ETF Approval Speculation Boosts Market Confidence
Apart from the high transfer activity, speculation in the market that a U.S. spot Solana ETF will be approved is also driving the price up. According to Polymarket data, there is a 76% chance that the SEC will approve it before the end of 2025, which has boosted the sentiment of Solana investors. If the SEC approves a Solana ETF, analysts believe that it will have a huge impact on the price and may take it as high as $400.
Many leading asset management companies such as Grayscale, VanEck, 21Shares, Bitwise, and Canary Capital are vying to become the first-ever U.S. spot SOL ETF. The market hopes surged with the SEC’s decision to consider these applications in November 2024. The critical deadline for Grayscale’s ETF application is January 23, 2025, and other decisions are expected on January 25.
Global ETF Approvals Enhance Solana’s Attractiveness
Brazil made a bold stride across the globe in August 2024 by becoming the first jurisdiction to approve the first Solana ETF on 7th August. However, this was not good enough as the price surged to $230 on the 11th of December 2024, also due to speculations that the same was now going to begin trading in more markets.
For instance, Bitwise set an extremely aggressive $750 price target for Solana, which reveals that they are highly optimistic about the immediate prospects of SOL tokens in the international market.
Impact of U.S. ETF Approval on Solana
Alejo Pinto, founder of the layer-2 network by Solana, Lumio, said how U.S. ETF approval may impact the price of SOL. He also adds because approval is not confirmed, the move upward can be very prone to price directionality since such excellent news is yet to be considered by the market. As Pinto believes, the speculative US Solana ETF approval has got the market lowball as a possible uptrend surge if approved may be strong enough.
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Conclusion: The recent breakout of SOL above $200 was largely due to the $55 million transfer activity of Pump and fun and rising optimism about the approval of a U.S. spot Solana ETF. Since asset managers compete to have the first one approved, this approval from Brazil sets up the stage for global adoption; thus, the price of Solana should continue to have volatility and maybe growth in the near term.
As the SEC makes its decisions in January 2025, SOL’s future appears quite bright, at least on the upside, in case the ETF is approved; analysts predict there will be a significant upward movement. Investors would need to keep tabs on development both on the regulatory and market sides as Solana continues to cut out a competitive position in this evolving cryptocurrency landscape.
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