Here’s why Solana (SOL) ETF approval will depend on Ethereum

Here’s why Solana (SOL) ETF approval will depend on Ethereum
фото показано с : invezz.com

2024-3-8 03:02

Solana (SOL) price has surged this year, helped by the strong demand for its ecosystem. Some of the top players in the ecosystem like Bonk, Orca, Jupiter, and Marinade Finance have become leaders in the broader industry. 

Solana ecosystem is booming

Solana has made a comeback in key industries like DeFi, Decentralised Public Infrastructure (DePIN), and NFTs. It has become the third-biggest player in the DeFi industry as its total value locked (TVL) jumped to over $7.8 billion.

Solana is also the third-biggest player in the NFT space. Data shows that it handled over $13 million in NFT sales in the past 24 hours, making it the third-biggest player after Ethereum and Bitcoin. Its DePIN platforms like Helium and Render Network are growing their share.

Many developers are opting for Solana because of its strong features compared to Ethereum. The network can handle far more transactions in a second than Ethereum. It also has lower transaction costs, saving users substantial sums.

A good evidence of this is in the amount of money that Solana makes. Because of high fees, Ethereum made over $2.8 billion in the past 365 days. In contrast, Solana made just $53 million even as its transactions jumped.

Blockchain networks fees

Solana ETF approval hopes

Another reason why the Solana price has surged is that investors believe that it will soon have a spot ETF. If this happens, analysts believe that it will have substantial inflows as we have seen with Bitcoin. The iShares Bitcoin ETF (IBIT) now has over $11 billion in assets.

One piece of evidence for this hype is the performance of the Grayscale Solana Trust (GSOL), which is trading at a premium vs its net asset value (NAV). This premium has jumped to 11%, which is encouraging.

However, a Solana ETF approval is a long-shot situation. For one, no company has made their application with the Securities and Exchange Commission (SEC).

Instead, eight companies like Franklin Templeton, Blackrock, VanEck, and Fidelity have filed for their spot Ethereum ETF. The SEC is expected to decide on this approval in the coming months. 

If the SEC agrees to an Ethereum ETF, it will increase the possibility of it approving a Solana fund. That’s because the the two blockchains are similar and do the same role in the industry.

The biggest challenge for this approval process is that the two are significantly different than Bitcoin. The SEC believes that Bitcoin is a digital commodity since it uses a Proof of Work (PoW) technology.

Solana and Ethereum, on the other hand, uses proof-of-stake (PoS), which the SEC sees as problematic. The SEC is concerned that the two are financial securities because they are unregulated securities.

It argues that their staking features place holders at risk since there is no disclosure on how the yield or returns are calculated. 

Therefore, if the SEC approves a spot Ethereum ETF, it will open a door for companies to file for a SOL ETF. Besides, Solana has become a juggernaut with over $65 billion in market cap.

The post Here’s why Solana (SOL) ETF approval will depend on Ethereum appeared first on Invezz

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

INS Ecosystem (INS) на Currencies.ru

$ 0.1979 (-0.01%)
Объем 24H $624.573k
Изменеия 24h: -4.56 %, 7d: -11.35 %
Cегодня L: $0.1979 - H: $0.2037
Капитализация $6.433m Rank 999999
Доступно / Всего 32.5m INS

ecosystem sol solana bonk like orca players

Источник: invezz.com

ecosystem sol → Результатов: 126


Hackers Target Solana (SOL) Amid Boom in Memecoins, NFTs, and Airdrops

Hackers are reportedly targeting the Solana ecosystem amid substantial gains witnessed by its native token SOL and various memecoins since October 2023. “As Solana continues to gain popularity, drainer groups are increasingly moving towards it, as indicated by the growing number of malicious Solana dApps detected by Blockaid,” a recent post stated.

2024-1-3 17:00


Can Solana Reach Mass Adoption? Expert Shares Insights

Thor Hartvigsen, a DeFi researcher and Business Development professional at Redacted Cartel, shared a detailed analysis into the potential of Solana to achieve mass adoption today. Hartvigsen’s examination focuses on the technical aspects and key developments (apart from price speculation) within the SOL ecosystem that might pave the way for its widespread acceptance. Parallel Execution, […]

2023-11-30 20:00


Solana Vs. Ethereum: Helius Labs CEO Lays Out Why SOL Is Superior

Mert Mumtaz, CEO of Helius Labs, a prominent player in the SOL ecosystem, recently shared his thoughts on the ongoing comparison between Ethereum and Solana, two leading Layer 1 (L1) blockchains. Through a series of posts on X (formerly Twitter), Mumtaz outlined several performance aspects where Solana has shown superiority. Solana Vs. Ethereum Mumtaz starts […]

2023-11-16 15:00


Lido Breaks Ties With Solana: SOL Staking Support Ends October 16

Lido (LDO) on Solana (SOL), a prominent protocol within the Solana ecosystem, has recently decided to discontinue its operations over the coming months.  The announcement follows extensive discussions within the Lido decentralized autonomous organization (DAO) community and subsequent voting by token holders, resulting in the approval of the sunsetting process. Lido On Solana Announces Sunset […]

2023-10-17 00:00


Everlodge (ELDG) Stuns Holders With 80% Growth, HSBC Allows Mortgage Payments With Shiba Inu (SHIB), Eclipse to Use Solana (SOL)

The world of cryptocurrencies continues to intersect with traditional finance in exciting ways. In recent developments, global banking giant HSBC has started accepting Shiba Inu (SHIB) for mortgage payments, Eclipse has adopted Solana (SOL) for its blockchain ecosystem, and Everlodge (ELDG) wows buyers with remarkable growth.

2023-9-28 15:30


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru