Recently, Solana’s price has maintained a level above $130 over the past 48 hours.
With Solana gaining over 30% of the funds exiting the Ethereum network, it stands to gain significantly from the upcoming spot Ethereum (ETH) ETF launch.
Solana’s Price Set to Gain from Ethereum ETF Inflows
Since its inception in 2020, Solana has outperformed various so many projects. Over the past four years, Solana has established itself as a leading blockchain network for transactions, second only to Ethereum.
This is largely due to its advanced and efficient blockchain, and growing global community. Data from DeFiLlama shows this, showing Solana holds 42.6% of the Non-Ethereum-based DeFi market, with a Total Value Locked (TVL) of $4.12 billion.
Looking forward, Solana is well-positioned to expand this dominance with the launch of Ethereum ETFs. On-chain data from Wormhole, Ethereum’s main cross-chain bridge, highlights that Solana is a primary destination for ETH investors seeking multi-chain transactions and profit optimization.
Over the past year, Ethereum investors have bridged $3.09 billion in assets, with Solana attracting $951.7 million, or 30.9%, of these funds.
The launch of Ethereum ETFs is expected to significantly boost the funds flowing into Solana’s blockchain.
Drawing a parallel with Bitcoin ETFs, which garnered nearly $60 billion worth of BTC within six months of launch, conservative estimates suggest Ethereum ETFs could attract around $30 billion in a similar timeframe.
This could be higher due to opportunities for passive income via the Proof-of-Stake mechanism.
Given that Solana has captured 30.85% of bridged outflows from Ethereum in the past year, it is well-positioned to attract a substantial share of the anticipated ETH ETF inflows.
If these inflows into the Solana blockchain increase as expected, Solana’s price could see new highs.
See Also: SEC Approves All Spot Ethereum ETFs
Solana’s Price Prediction
Currently, Solana is trading at around $102.74, showing a slight daily increase of 1.62% as of June 23. The price movement shows solana’s price is within a descending triangle pattern, characterized by downward-sloping resistance and horizontal support.
Typically, this pattern suggests a bearish continuation, yet the 200-day Simple Moving Average (SMA) complicates this view.
The 200-day SMA hints at a potential rebound if buying pressure remains above this level. On the other hand, a break below could lead to further declines, potentially targeting lower support zones near $100. Key resistance levels to monitor include $142.50 and $159.14, which could impede price.
The interaction between the 50-day and 200-day SMAs, alongside critical levels, will be determine Solana’s next high.
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