Solana's price experienced a surge of over 10%, surpassing $200, following a significant transfer of $55 million to the Kraken cryptocurrency exchange.
This increase in value coincided with the transfer activities of Pump.fun, which conducted two substantial transactions on the same day.
Throughout 2024, Pump.fun has deposited over $303 million worth of SOL to Kraken while selling more than $41 million of these tokens.
This has raised concerns about the sustainability of Solana's price rally.
Speculation about the approval of a U.S. spot Solana ETF has also contributed to market optimism.
Polymarket data suggests a 76% likelihood of approval before the end of 2025, and analysts believe this could have a transformative impact on Solana's price.
The U.S. Securities and Exchange Commission (SEC) has accepted ETF applications for review, with Grayscale's application deadline set for January 23, 2025.
The approval of a Solana ETF in Brazil has further fueled Solana's appeal.
Market analysts are closely monitoring global regulatory developments, and the sentiment among investors remains optimistic.
Alejo Pinto, founder of Lumio, has highlighted the potential market impact of a U.S. ETF approval, noting the delicate balance between speculation and reality in the cryptocurrency space.
The competition among asset managers intensifies as they pursue the goal of launching a U.S. spot Solana ETF.
The interplay of large transactions, regulatory developments, and market speculation is shaping Solana's trajectory in the cryptocurrency market.