 to become the fourth-largest cryptocurrency by market cap. The anticipation of a Solana ETF has driven substantial investor interest, with SOL experiencing significant price growth.){kind=link}
Santiment reported that Solana (SOL) has made a significant milestone today, surpassing Binance Coin (BNB) to secure the number 4 position in the cryptocurrency market for the first time in its history. This achievement comes amid a substantial +35% growth for SOL over the past two weeks, compared to BNB’s +10% increase, providing SOL with a clear momentum advantage.
Solana Becomes the 4th Largest Crypto by Market Cap
The excitement that has been building around the launch of a Solana ETF has greatly increased investor and trader interest in cryptocurrencies. SOL is currently trading close to $185 at the time of reporting, indicating a price increase of more than 4% over the previous day. SOL has outperformed popular assets like Bitcoin and Ethereum during the last week, rising more than 10%.
The community is quite excited and is wondering whether Solana or XRP will be the first to receive ETF clearance. While XRP is facing legal challenges with the SEC, Solana ETFs look to have a more straight path to clearance. The recent SEC approval of Ethereum ETFs has created fresh opportunities for other cryptocurrencies.Â
Despite SEC’s strong scrutiny, Solana appears to fit all of the standards for an ETF, with GSR even speculating last month that Solana could be next in line if other spot digital asset ETFs are allowed in the US.
How Close are we Towards the Solana ETF?
Despite his confidence, BlackRock’s Head of Digital Assets, Robert Mitchnick, expressed doubts regarding the approval of Solana, Ripple, and other altcoins at the Bitcoin Conference 2024.
Mitchnick expressed concerns about the altcoins’ lack of maturity and liquidity, as well as regulatory difficulties and the SEC’s reluctance to approve new crypto ETFs. He emphasised that, while Bitcoin and Ethereum have the largest market capitalisations, other cryptocurrencies do not yet match the requirements for ETF approval.
In summary, Solana’s unprecedented climb to the 4th in cryptocurrency rankings demonstrates its expanding significance and investor confidence. However, problems persist with ETF acceptance, particularly from a regulatory and market maturity standpoint.