Solana (SOL) is up 35% in 2024 and is currently the fifth-largest crypto by market cap. Last week, asset management firm VanEck filed for the first spot SOL exchange-traded fund (ETF) in the US, and the movement was quickly followed by 21Shares. This news was enough to make SOL one of the best-performing crypto in the past seven days among the 20 largest by market cap.
Tristan Frizza, founder of decentralized exchange Zeta Markets, sees a favorable July for Solana and the crypto market as a whole. “Despite recent market fluctuations, the overall crypto macro conditions look strong, and we anticipate a positive trend to materialize in the coming months,” he shared with Crypto Briefing.
Frizza highlights Bitcoin’s dominance has dropped by more than 5% in the past few days, from 52.8% on June 25 to around 50% at the time of writing, which is a movement that typically encourages market diversification, driving investors to explore other digital assets.
Therefore, in this favorable landscape, the founder of Zeta Markets stated that Solana is poised to become the third-largest crypto by market cap due to its “unmatched ability to handle high transaction volumes with low fees, real-world use cases, and an extremely active ecosystem.”
“It’s an ideal environment for both retail and institutional investors, especially after VanEck’s application for the first Solana ETF. This milestone clearly indicates SOL as the next candidate for ETFs after BTC and ETH. It also opens up the possibility of SOL being classified as a commodity,” he added.
Although it might take a while for the approval of a spot SOL ETF, this boosts a positive outlook for the Solana ecosystem, which will “undoubtedly” continue driving more interest and usage. “Overall, the potential for more crypto-friendly administrations could be a tailwind for the market,” concluded Frizza.