Ethereum is weakening while Solana is promoted by giants like Visa and ETFs are reshaping the crypto world. Is Solana the next king of blockchains? And what role does the connection to FTX play? We take an in-depth look at Solana’s meteoric rise, relationship with FTX, partnerships and investment flows that could shape the cryptocurrency’s fate. You won’t believe what comes next!
Bitwise and other giants catapult Ethereum futures ETFs into the spotlight
Already Bitcoin futures ETFs have been offering for some time, led by ProShares Bitcoin Strategy ETF, offers crypto investors a way to get into the booming sector. Meanwhile, a new wave of enthusiasm Ethereum futures ETFs launched on the Chicago Mercantile Exchange (CME) today, October 2, briefly sending crypto markets higher.
Next to the Bitwise Ethereum Strategy ETF Six more Ethereum futures ETFs have launched on the Chicago Mercantile Exchange (CME): ProShares Ether Strategy ETF (EETH), ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE), Bitcoin & Ether Market Cap Weight Strategy ETF (BETH) and VanEck Ethereum Strategy ETF (EFUT).
Meanwhile, they remain Spot Bitcoin ETFs from heavyweights like BlackRock, Valkyrie and WisdomTree still on hold with the US Securities and Exchange Commission. However, the delays have not dampened optimism in the crypto market, and the Ethereum futures ETF launch could be a sign of the impending approval of spot Bitcoin ETFs.
The emergence of these ETFs is likely to have far-reaching effects on the crypto market and therefore also on Solana. ETF reinforcement could increase liquidity and institutional interest ETFs for Solana will also become more conceivable in the future.
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Visa and Solana form an alliance
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Breaking: Visa Expands Stablecoin Settlement Pilot to Solana@Visa is scaling their USDC settlement pilot to include the Solana blockchain, enabling enterprise-grade throughput at virtually no cost for Visa issuers and merchant acquirers on Solana. https://t.co/rF5ouZaISM
— Solana (@solana) September 5, 2023
The Partnership between global payment service provider Visa and blockchain platform Solana was announced 4 weeks ago. Visa is expanding its payment processing with the stablecoin USDC on the Solana blockchain. The goal is to revolutionize cross-border payments. Visa has integrated the stablecoin USDC into its infrastructure and uses Solana for faster, more efficient transactions.
As part of pilot projects, Visa has already moved millions of USDC between its partners via the Solana and Ethereum blockchain networks. In particular, the choice of Solana instead of Ethereum is notable because Solana offers significantly higher transaction speeds compared to Ethereum.
Solana, also known for its high scalability, becomes serious competition for other blockchains through this collaboration with Visa. The stablecoin USDC in particular can consolidate its status as one of the leading stablecoins in the market through this partnership.
Solana’s price development could be strongly influenced by this partnership, as the news of the collaboration has already caused a slight increase in Solana’s price. The potential for a significant increase in the Solana price increased usage and acceptance is available. Because Visa already plays a key role in the financial world.
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Solana is recording continuous inflows of funds
According to that Report from CoinShares Digital asset investment products saw inflows return after six weeks of net outflows – a total of $21.2 million. Bitcoin dominated inflows with $20.4 million, while Bitcoin shorts saw another $1.5 million in outflows.
Included Solana also remains a shining star with inflows of $5.1 million. This marks the 27th week of this year with inflows and there are only four weeks of outflows in 2023, making Solana the “most loved” altcoin this year might.
In contrast, Ethereum saw outflows for the seventh consecutive day, losing another $1.5 million. This development is another indication of Solana’s potential.
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Solana and FTX: What the asset sales could mean for the SOL price
In a recent development, the Delaware Bankruptcy Court has approved the liquidation of FTX’s digital assets, a move that could significantly impact the crypto market. The permission for the Sale also includes Solana (SOL), with a volume of approximately 55.75 million tokens, representing almost 4% of the total SOL supply.
However, only $50 million was allowed to be sold in the first week and $100 million in each of the following weeks. This takes some of the selling pressure off. In addition, according to one, the tokens were Cointelegraph report as of September 14th about 33 million or thereabouts $860 million still staked, with monthly unlocks estimated at $17 million in SOL for the next four years.
The connection between Solana and FTX is not new. The Solana Foundation also held significant shares in FTX Trading LTD. and had assets on FTX until November 2022, when FTX stopped customer withdrawals.
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Solana’s TVL increase: A harbinger of a continuation of the rally?
The total assets in Solana’s protocols (Total Value Locked (TVL)) have increased in the experienced a notable increase of more than 4% in the last 24 hours. The TVL increase suggests that Trust in the Solana network is growingwhich usually has a positive effect on the price of the native token.
Solana’s DeFi and NFT Explosion: Is Ethereum at Risk of Being Overtaken?
Solana’s decentralized finance (DeFi) apps and non-fungible tokens (NFT) are experiencing rapid development, contributing significantly to the value and attractiveness of the platform. The Increasing number of developers building DeFi and NFT products on Solana is increasing demand for the SOL token and supporting its price.
Ethereum, although more mature and with a stronger developer community, struggles with higher fees and slower transactions. While Ethereum has advantages in terms of security and decentralization, Solana stands out in terms of scalability and ease of use. That’s how it was Ethereum co-founder Vitalik Buterin recently even commented positively on Solana
The rapid development of the DeFi and NFT sectors on Solana could therefore be a catalyst for further growth, especially when it comes to gaining market share from Ethereum. However, regulatory uncertainty remains a risk factor for both platforms Solana was recently labeled a security by SEC Chairman Gary Gensler while equivocating on Ethereum.
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Solana price prediction
Solana is currently coming up with one Market cap of $9.63 billion and is located on 7th place of the largest cryptocurrencies. Of the total 558.8 million SOL tokens are already around 74% in circulation, so investors still have to plan for at least 26% inflation. However, the number of tokens can also be increased later, which could then lead to even higher inflation. According to the data from Coincodex lay the Inflation rate over the last 12 months at a high 16.36%.
Solana suffered massively from the FTX scandal and the relationships between SOL and the former second-largest crypto exchange, while the coin fell to $9.64. Since then, Solana has been able to temporarily rising again by over 304%. However, SOL is still trading today 91% below its all-time high of $260.06. The performance this year was in Compared to the top 100 on averagewhile Solana outperformed by 57%, but was overtaken by Bitcoin and Ethereum.
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After a period of consolidation at the 61.8 Fibonacci level and vertical resistance, Solana recorded a slight increase in trading volume on September 28th, jumping through the POC of the volume profile. However, the price is currently oversold according to the RSI and the Keltner Channel.
According to the order book there are also many sell orders in the $24.50 range. In addition, the “Point of Control” (POC) is also likely to act as a magnet and have a bearish effect. Only a break above $24.50 could open the way to $26.69. The next important level is in the $26.88 area. A correction to $21.13 is still likely.
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About the author: Simon Feldhusen came into contact with the stock market for the first time 17 years ago and has been intensively involved in the topics of trading, cryptoassets, stocks, P2P, corporate financing, finance and entrepreneurship on a daily basis for more than 8 years. He has also been working as a copywriter and ghostwriter in the financial sector for several years. During this time he has acquired a diversified knowledge through various training courses on the financial markets and following daily news. Since then, not a day goes by without him dealing with the markets. He publishes, among others, for Finanz.net, ETF-Nachrichten.de, Coincierge.de and P2E News.com.