- Solana surged over 10% to surpass $200 after Pump.fun transferred $55 million worth of SOL to the Kraken exchange.
- Analysts predict SOL could reach $400 by 2025, driven by historical patterns and the potential approval of a US spot Solana ETF.
Solana made a strong comeback, surging over 10% to breach the $200 mark following significant activity linked to Pump.fun, a memecoin launch platform. This rebound came after SOL briefly dipped to $189 at 5:00 pm UTC on January 1.
The price rally began at around 6:00 pm UTC when Pump.fun’s fee account transferred $55 million worth of SOL to the Kraken cryptocurrency exchange, according to Solscan data. This substantial movement was split into two transactions: the first, worth $22.8 million, occurred at 4:37 pm UTC, and the second, valued at $32.7 million, followed at 5:45 pm UTC.
Pump.fun’s Influence on SOL Price
Pump.fun has been a significant player in the Solana ecosystem throughout 2024, contributing considerable sell pressure. To date, the platform has deposited over $303 million worth of SOL to Kraken and sold $41 million worth of tokens, according to Lookonchain data.
Despite this selling pressure, Solana’s price demonstrated resilience, bouncing back quickly after each major transaction. This latest $55 million transfer underscores the dynamic relationship between large-scale transactions and Solana’s price movements.
The recent rally to $200 has reignited discussions about Solana’s potential, with some analysts predicting a long-term bullish trend. Historical chart patterns and market sentiment suggest SOL could climb to $400 by 2025, driven in part by the potential approval of a spot Solana exchange-traded fund (ETF) in the United States.
Currently, the likelihood of a US spot Solana ETF approval stands at 76% on Polymarket, a leading decentralized predictions market. If approved, the ETF could attract significant institutional interest, further boosting SOL’s price.
Alejo Pinto, founder of the Solana Layer-2 network Lumio, stated that an ETF approval would likely have a positive price impact on Solana, as the current low probability of approval has not yet been factored into the market.
Several prominent asset management firms, including VanEck, Grayscale, and 21Shares, are vying to launch a Solana ETF. Decisions on these applications are expected later this month, with Grayscale’s deadline on January 23 and others facing a preliminary decision by January 25.
Broader Implications
The Solana ecosystem continues to capture global attention, as evidenced by Brazil’s approval of its first Solana ETF in August 2024. This milestone has set a precedent, fueling optimism for similar approvals in other jurisdictions.
With strong institutional backing and increasing retail interest, Solana appears poised for further growth. While its price remains influenced by major transactions like Pump.fun’s recent activity, the potential for a US spot ETF could mark a turning point, pushing SOL to new highs in the coming years.
For now, Solana’s ability to reclaim the $200 level highlights its resilience and the growing confidence of investors in its long-term prospects.
