Key Takeaways:
Key Takeaways:
Solana (SOL) has been one of the fastest-growing blockchains, even eclipsing Ethereum (ETH) – the world’s largest decentralized network by trading volume – in that regard. Over the past year, the price of SOL has boomed by a whopping 781.33%.
This shows how prominent Solana has become in the market. The blockchain has witnessed an influx of memecoins, including some popular ones like BONK, WIF, and BOME, that have turned the market on its head. At one point, Solana even flipped Ethereum on daily trading volume, indicating the network’s popularity among crypto enthusiasts.
Three Arrows Capital Founder Sets $1,000 Price Target For Solana
Experts predict SOL to chase down ETH as they see it as the only able competitor to the second-largest cryptocurrency by market capitalization. In a recent X post, Zhu Su, the co-founder of now-defunct crypto hedge fund Three Arrows Capital (3AC) made a bold prediction for Solana, suggesting it could aim for a price target of $1,000 per token.
He based his projection on the historic market optimism that propelled Ethereum to its present level and the performance of digital asset manager Grayscale’s Solana Trust, which has boosted investor confidence in the cryptocurrency and could help propel its value significantly.
Grayscale’s crypto products allow investors to gain exposure to digital currencies through a traditional investment vehicle without the challenges of directly, buying, storing, and safekeeping them. They have historically served as a barometer for a cryptocurrency’s potential.
Grayscale Solana Trust Fund Is Trading At A Premium, Indicating SOL’s Future Potential
The Grayscale Solana Trust (GSOL) is one of the first securities solely invested in and deriving value from the price of SOL. Each share in the fund reflects the value of the Solana held by the trust, which can be traded at a premium or discount depending on the asset’s market value.
The digital investment manager also offers trusts for other cryptocurrencies such as Ethereum (ETHE), Litecoin (LTCN), Ethereum Classic (ETCG), Bitcoin Cash (BCHG), and others. Their flagship product is the Grayscale Bitcoin Trust (GBTC), which was launched as a private fund for accredited investors in 2013 and converted this year to become the world’s first exchange-traded fund (ETF) tracking the price of BTC.
Just four years ago, Ethereum was trading at around $200 per token, while the shares of Grayscale Ethereum Trust (ETHE) were going for a substantial premium of $1,000. ETH eventually caught up with the price target, experiencing immense growth in subsequent years.
In his tweet, Zhu highlighted that Solana’s numbers are looking “very similar” to when Ether was trading at just $200. Meanwhile, GSOL is exhibiting a similar premium to what ETHE was in 2020, indicating strong investor confidence and future price expectations.
The trust’s premium is seen as an early indicator of the cryptocurrency’s future market position. It is not speculative because the value reflects the growing confidence among traditional investors in Solana’s long-term viability.
As Solana continues to develop its infrastructure and expand its applications, the trust’s premium could offer a compelling narrative for the blockchain’s growth prospects.
Solana ETFs Could Be Next In Line Once The SEC Approves Ethereum Spot ETFs
Recently, 21Shares, a leading issuer of exchange-traded products (ETPs) that invest in crypto assets, sought permission from the US Securities and Exchange Commission (SEC) to launch a Solana-based ETF.
The proposed investment product, to be listed on the Cboe BEZX exchange, underscored the increasing attempts to integrate cryptocurrencies into conventional financial systems.
The SEC’s stance on crypto assets remains pivotal in this regard. Should the regulator not classify Solana as a security, the ETF could move forward, potentially increasing Solana’s exposure.
Prominent crypto investor Brian Kelly predicts that Solana is next in line to be launched as an ETF in the United States.
Last month, the SEC accepted applications from leading ETF issuers, including BlackRock, Grayscale, and Fidelity, to launch investment funds backed by Ethereum. The products are expected to begin trading in July.
Pseudonymous crypto analyst CryptoCapo is urging his followers to go long on SOL as he believes the cryptocurrency is likely to enter an uptrend soon.
At the time of writing, Solana (SOL) is trading at $140.17 – down 2.58% over the last 24 hours.
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