SOL investors are enjoying this year’s holiday season as Solana approaches the $70 mark today, supported by extremely bullish market conditions. According to Coin geckothe token has risen 12% in the weekly time frame, with the biggest jump in the monthly time frame of 30%.
Investment manager VanEck also speculates that Solana will join the ETF race after recently news that the U.S. Securities and Exchange Commission will approve a spot Bitcoin exchange-traded fund, further increasing exposure to traditional investors.
A not so distant possibility
VanEck recently issued a list of 15 predictions for the crypto world for 2024. In summary, the post favors a bullish 2024 for crypto, especially in Web3 gaming and DeFi. According to the forecast, both Web3 and DeFi will start 2024 strong; where Web3 gaming gets a breakthrough and DeFi finally reconciles with the Know-Your-Customer issues it is known for it.
The most notable of these, however, is the speculation that SOL will be part of the spot ETF race in 2024.
“Solana will become a top 3 blockchain based on market capitalization, Total Value Locked (TVL) and active users,” VanEck said in the blog post.
VanEck sees Solana as a top player within the DeFi space and even considers the possibility of SOL flipping Ethereum in the long term. This prediction is influenced by the fact that VanEck manages an exchange-traded note (similar to an ETF) where SOL is the underlying asset. This Solana ETN was released in 2021 during the heyday of the crypto boom.
SOLUSD currently trading at $71.449 territory. Chart: TradingView.com
If Solana joins the ETF race in 2024, it will attract more institutional investors willing to take some exposure to crypto investments.
Short term pain for long term gain
The token is at a high price after following Bitcoin in its rally. This obviously put SOL in a position that is somewhat untenable in the short term. So far, investors and traders should be cautious as the current price level could result in a slight dip in the coming days.
Chart: TradingView
However, a short-term price drop need not be feared. This will only put SOL in a better position for higher profits. If the token settles at the $70 price level, we could see gains well beyond $80 to $90 in the coming days.
For now, the year will end on a positive note as SOL heads towards $100.
Featured image from Pixabay
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