Solana (SOL), the high-performance blockchain platform, has recently caught the attention of crypto enthusiasts. Despite a dip in its price, SOL has seen a massive increase in trading volume. This surge suggests that traders remain optimistic about Solana’s future, even as the broader crypto market faces challenges.
Trading Volume Skyrockets
In a surprising turn of events, Solana’s trading volume recently shot up by an impressive 84.46% to reach $8.19 billion, according to Coinglass data. This significant increase shows that traders are still very interested in SOL, even though its price has been going down lately.
The surge in trading volume is spread across several major crypto exchanges, with Binance leading the pack with $2.98 billion in SOL trading volume.
As of the time of this report, SOL is trading at $140.80, marking an 8.6% decrease in the last 24 hours. Over the past month, the coin has experienced a more significant drop of 14.6%.
This downward trend isn’t unique to Solana, as the entire crypto market has been facing similar challenges, largely influenced by Bitcoin’s recent performance.
Solana ETF Developments
In an interesting development, some asset managers are looking into creating Solana-based Exchange-Traded Funds (ETFs). VanEck was the first to file for a spot SOL ETF in the United States, quickly followed by 21Shares. This news briefly boosted market sentiment, causing a 6% spike in SOL’s price.
However, the overall market impact of these ETF filings has been limited. When comparing Solana’s performance to that of Ethereum, which has gone through similar events, the ETH to SOL ratio shows that Solana’s outperformance was short-lived. The ratio quickly reversed after Ethereum’s ETF approval in the US.
The effect on Solana’s derivatives market was also minimal. The funding rate for SOL rose slightly but soon returned to neutral levels, indicating a lack of strong bullish demand. Open interest in SOL futures remains about 20% below its early June levels.
Looking Ahead
While Solana’s price has been struggling recently, the surge in trading volume and some positive technical indicators suggest that traders remain optimistic about its future. The potential introduction of Solana ETFs could also bring more attention to the platform.
Solana’s Massive Crash
As mentioned earlier, Solana has seen its price slip significantly in recent times as the broader market continues to nurse losses. This dip comes shortly after Solana managed to claw its way back to a three-week high of $155 on July 2.
However, the bearish stint appears to have cooled near the $140 support mark as a rebound looms. But this doesn’t exactly put a full stop to the downward spiral.
Meanwhile, we could see a bullish push towards the $155–$157 range over the coming days, when the bearish sentiment should have dissipated to a good extent.
This outlook is supported by the upcoming Ethereum ETF launch in the US, which experts say could go live before July 8. This event should breathe some fresh bullish air into the market again and support more climbs for Solana.
SOL Statistics Data
SOL Current Price: $140.80
Market Cap: $65.8B
SOL Circulating Supply: 462.7M
SOL Total Supply: 579.3M
Market Ranking: #5
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