SOL investors are enjoying this year’s festive season as Solana enters the $70 mark today, backed by extremely bullish market conditions. According to CoinGecko, the token is up 12% in the weekly timeframe, with the biggest jump in the monthly at 30%.
Investment manager VanEck also speculates that Solana will join the ETF race, following recent news that the US Securities and Exchange Commission will approve a spot Bitcoin exchange-traded fund, further bringing exposure to traditional investors.
A Not-So Far Off Possibility
VanEck recently released a list of 15 predictions for the crypto world for 2024. In summary, the post favors a bullish 2024 for crypto, especially in the realms of Web3 gaming and DeFi. According to the prediction, both Web3 and DeFi will start 2024 on a strong note; with Web3 gaming getting a breakout and DeFi finally reconciling with the Know-Your-Customer issues it’s known for.
However, the most eye-catching of these is the speculation that SOL will be part of the spot ETF race in 2024.
“Solana will become a top 3 blockchain by market cap, Total Value Locked (TVL), and active users,” said VanEck in the blog post.
VanEck sees Solana as a top player within the DeFi space, eyeing even the possibility of SOL flipping Ethereum in the long run. This prediction is influenced by the fact that VanEck is running an exchange-traded note (similar to an ETF) with SOL being the underlying asset. This Solana ETN was released in 2021 in the heyday of the crypto boom.
SOLUSD currently trading at $71.449 territory. Chart: TradingView.com
SOLUSD currently trading at $71.449 territory. Chart: If Solana does become part of the ETF race in 2024, it will bring in more institutional investors that willing to take some exposure from crypto investments.
Short-Term Pain For Long-Term Gain
The token sits at a high price point after following Bitcoin in its rally. This naturally brought SOL to a position that is slightly untenable in the short term. So far, investors and traders should be careful as the current price level might result in a slight dip in the next couple of days.
Chart: TradingView
Chart: TradingViewHowever, a dip in price shortly shouldn’t be feared. This will only bring SOL in a better position for higher gains. If the token settles on the $70 price level, we might see gains far beyond $80 to $90 in the coming days.
For now, the year will end on a positive note as SOL is on the road towards $100.
Featured image from Pixabay
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