Market maker GSR in its latest report “Is Solana Next?” assesses the potential surge in Solana’s value, suggesting that just the market’s belief in the approval of a Solana spot ETF could lead to a future increase in SOL’s value far exceeding that of BTC by several times.
(VanEck has applied for the first Solana ETF in the United States, Bloomberg analyst: approval is not impossible)
**Table of Contents**
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GSR: Increased Likelihood of Solana Spot ETF
Solana’s Market Demand Firmly Third
SOL’s Future Surge to Once Again Exceed BTC
GSR: Increased Likelihood of Solana Spot ETF
GSR lists various positive factors for Solana in the report:
– The possibility of launching a spot ETF.
– Extensive applications (protocols) and a large community of users and developers.
– Technical excellence: Includes a proven historical mechanism, parallel transaction processing, and high hardware demand that optimized speed and security (at the expense of decentralization).
The report mainly focuses on the potential probability of the launch of a Solana spot ETF and its positive impact on the price, especially as cryptocurrencies seem to have become a political issue.
GSR analysts point out that Trump’s support for the crypto industry has led the Democratic Party to relax its stance on digital assets during the election year:
While the current legislative and regulatory framework is unlikely to allow the introduction of many digital asset spot ETFs, the Trump administration and the liberal SEC committee might do so. The emergence of the Digital Asset Market Structure and Investor Protection Act, which defines securities and commodities, really increases the possibility.
**Solana’s Market Demand Firmly Third**
According to GSR’s standards, Solana’s market demand and degree of decentralization are expected to join the ranks of Bitcoin and Ethereum’s spot ETFs.
Especially since Solana’s demand score is firmly second, far exceeding the third-place Near.
Decentralization Rating
Demand Rating
**SOL’s Future Surge to Once Again Exceed BTC**
GSR is bullish on SOL based on the situation where “the market begins to believe that a spot ETF will be approved,” with BTC rising from $27,000 in October last year to the current level of about $63,000.
In contrast, GSR believes that SOL could rise 1.4 times in a bear market, 3.4 times under normal circumstances, and 8.9 times in a bull market. There is even reason to believe in a higher surge because SOL’s function in the ecosystem is not similar to BTC’s. SOL is widely used in staking, DeFi applications, and its liquidity and market capitalization scale may not grow linearly.
SOL Potential Surge
BTC
GSR
Solana
Spot ETF
**Further Reading**
Review of the Market Performance in the First Half of 2024: Both U.S. Stocks and Cryptocurrencies Strongly Rise
Mt. Gox’s Bitcoin Selling Pressure Not as Heavy as Imagined, Majority are Long-Term BTC Holders