Despite a recent pullback below the $200 mark, Solana (SOL) prices are experiencing renewed optimism. Ongoing inflows into spot exchange-traded funds (ETFs), strong network statistics, and a potential approval of SEC-regulated SOL ETFs by institutions are key drivers behind this rally. Analysis suggests that the expected approval of new spot SOL ETFs from companies like Grayscale and Franklin Templeton, with high odds of success according to Polymarket, is a crucial factor in attracting substantial investor interest. This sentiment is evident in the growing asset base of the recently launched 2X Solana ETF, which has been adding funds steadily since February.
The SOLT ETF aims to replicate 2x daily performance of SOL, similar to leveraged ETFs like ProShares UltraPro QQQ and Direxion Daily S&P 500 Bull. However, it’s worth noting that the SOLT ETF carries an expense ratio of 1.85%, which is higher than many stock-based leveraged ETFs with annual fees under 0.9%. This suggests a potential for stronger demand from institutional investors should more cost-effective spot ETFs be approved.
Beyond the impact of ETFs, Solana’s network activity has been bolstered by increased transaction volume and active accounts in recent months. A surge in transactions over the last 30 days shows a 66% increase, while the number of active users reached an impressive 101 million. These positive indicators paint a picture of a strengthening ecosystem.
Technical analysts see Solana price showing signs of renewed momentum with potential for a rebound to above the $200 resistance level. A break above this threshold could lead to the 78.6% Fibonacci retracement level at $252, while a significant drop below $150 would challenge bullish expectations.