Solana has the potential to surpass Bitcoin and Ether in 2025, driven by the possibility of a US-based spot SOL ETF and anticipated retail profits.
In 2025, Solana is poised for another year of substantial growth, which will be fueled by the growing interest of retail investors and the anticipated release of a Solana exchange-traded fund (ETF) based in the United States.
According to data from Cointelegraph Markets Pro, SOL slid below the critical $200 psychological threshold on January 9 following a weekly decline of more than 7%.
During an exclusive interview at the Emergence Prague 2024 event, Nicolai Søndergaard, a research analyst at Nansen, informed Cointelegraph that SOL is on the brink of a year of substantial financial returns, primarily fueled by the profit expectations of retail investors, despite the current correction.
“Solana’s appeal is contingent upon anticipated profits.” That is, Solana appears to be less expensive.
Søndergaard stated, “When you are inspecting a unit, you may conclude that it is more cost-effective to acquire.”
New retail investors frequently commit the error of relying on a cryptocurrency’s per-unit price to ascertain its value and future potential, which is significantly more influenced by the coin’s market capitalization.
This misunderstanding frequently renders tokens such as SOL more appealing to retail investors, as their price point allows them to acquire an entire coin for approximately $200, whereas that amount would only purchase a fraction of Bitcoin or Ether.
Nevertheless, the market capitalization of a token can offer more precise information regarding its total value, its adoption in comparison to other cryptocurrencies, and its potential price volatility.
Based on historical chart patterns and the increasing anticipation for the first US-based spot SOL ETF, an increasing number of analysts anticipate that Solana’s price will surpass $400.
Solana ETFs Are Awaiting Approval By January Ending 2025
Shortly following President-elect Donald Trump’s inauguration on January 20, the crypto industry may witness the approval of the first SOL ETFs by the end of January.
VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital are among the five organizations that are competing for a position in the SOL ETF.
The final deadline for Grayscale’s Solana ETF application is January 23, while the four other applicants anticipate a preliminary decision by January 25, 45 days after the SEC formally accepted the ETF application for review in November 2024.
According to the analyst, a US SOL ETF may provide a more accessible option for traditional investors who do not have an account with a centralized exchange (CEX) and wish to gain exposure to SOL.
According to Nansen’s Søndergaard, the primary concern for crypto investors is the timeline, despite the high probability of a SOL ETF being approved during 2025:
“The question is if it’s going to take a lot of iterations before it goes through, similar to what happened with BTC and ETH. But I think it’s definitely happening in 2025.”
On August 7, Brazil’s inaugural Solana ETF was authorized, establishing a precedent for other global jurisdictions.
On December 11, Solana regained its previous high of $230, thanks to the increasing anticipation among traders for a SOL ETF and the establishment of a $750 price target by Bitwise. At 10:08 am UTC, Solana was trading above $191.
