Solana may rise in price by 1.4–8.9 times if spot exchange-traded funds based on cryptocurrency are approved in the United States. Such estimates were presented by the market maker GSR.
"Changes are already taking place due to the fact that Donald Trump has once again begun to support the industry. This has forced Democrats to soften their stance on digital assets," the analysts wrote.
The GSR expressed the hope that Trump and the liberal chairman of the SEC will pave the way for the emergence of many crypto products.
The adoption of a draft law on the structure of the digital asset market, which defines securities and commodities, may become a catalyst, experts said.
Experts evaluated various cryptocurrencies according to the criteria of market demand and decentralization. They concluded that Solana has the best chance of adding to the list of registered ETFs after ETH.
Data: GSR.Analysts mentioned the advantages in Solana's speed and scalability, which are achieved thanks to the Proof-of-History consensus algorithm. They also praised the possibility of parallel processing of transactions in the blockchain, which allows for greater performance of each node.
In the relatively high hardware requirements of the network, experts saw the potential for increased efficiency.
"Solana may be the first to truly solve the blockchain trilemma and eventually realize the vision of synchronizing the global state at the speed of light," they wrote.
The market maker intends to open a long position on the asset due to its weak dynamics relative to the market.
GSR estimates that bitcoin has grown from $27,000 in October 2023 (from the moment "when market participants began to consider the real possibility" of ETF approval) to the current $63,000. The growth was 130%.
"Solana can grow 1.4 times in the "bearish flows" scenario, 3.4 times in the base scenario and 8.9 times in the "blue sky" scenario. There is reason to believe that the impact may be higher than these estimates, since, unlike digital gold, SOL is actively used for staking and in dapps. The relationship between relative flows and relative size may be nonlinear," the experts concluded.
On June 27, VanEck submitted a form to the SEC for registration of an exchange-traded fund based on the Solana cryptocurrency. The company is the issuer of one of the 11 BTC-ETFs approved in January.
Recall that in June, the 3iQ digital asset manager applied for registration of Canada's first Solana-ETF with the option of receiving remuneration from staking (6-8% per annum).
Earlier, Matrixport co-founder Daniel Yang expressed an opinion about the possibility of the asset becoming the next contender for the launch of an exchange-traded fund. Jeffrey Kendrick, head of research at Standard Chartered, also predicted the appearance of ETFs on SOL in 2025.
A similar point of view is shared by Ripple CEO Brad Garlinghouse and Galaxy Digital CEO Mike Novogratz.