Solana (SOL) is set to become the third-largest cryptocurrency by market cap this year, behind Bitcoin and Ethereum.
With its ability to handle high transaction volumes at low costs, real-world use cases, and an extremely active ecosystem, Solana has been steadily catching the eyes of many investors.
The excitement surrounding Solana is over the roof. Especially after VanEck applied for the first Solana ETF. Bitcoin’s dominance in the market dropped from 52.8% on June 25 to around 50% on June 30th. It is at 54.84% as of press time.
Solana remains the best-performing cryptocurrency of this cycle. As Tristan Frizza, the founder of Zeta Markets, told Cryptopolitan:
“While the approval of a SOL ETF will take some time, the positive outlook for the Solana ecosystem will undoubtedly continue driving more interest and usage. Despite recent market fluctuations, the overall crypto macro conditions look strong, and I anticipate a bull rally to materialize in the third quarter.”
Despite some skepticism from financial giants like JPMorgan about the likelihood of approval, the market has responded positively. Solana’s price has increased this week, even as other cryptocurrencies were declining.
ARK 21Shares also filed for a spot Solana ETF, with a provision stating that if Solana is ever classified as a security by the SEC, the ETF would be terminated.
Solana to lead crypto market into the “banana zone”
Crypto analyst and former Goldman Sachs executive Raoul Pal has, like majority of the crypto community, been vocal about his bullish outlook on Solana.
In a recent video, Raoul predicted that Solana would lead the next crypto market expansion for. He believes the crypto market is approaching the “banana zone,” which is a term for a long period of sustained growth.
Raoul explained:
“When is the banana zone? I think it’s coming, and I think Solana is going to lead it. As I’ve urged with you, patience is required. These things don’t come instantaneously but when they come, they can be life-changing.”
His confidence in Solana is based on key developments within the Solana blockchain. The first is NFT compression, which allows for massive scaling of NFTs at a low cost.
This technology opens up new use cases for NFTs, such as ticketing and derivatives contracts, making Solana a versatile platform for various applications.
The second innovation is Firedancer, a development that has convinced Raoul to invest heavily in Solana. He stated, “Firedancer got me really across the line, made me all in on Solana, where now 90% of my crypto allocation, which is 100% of my liquid net worth, is in Solana. [That] may be foolish to some of you but I think that market concentration is the right way of doing things when you’ve got everything correlated.”
Jai Hamid
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