On January 1st, Solana’s price rose by approximately 10% to over $200 after a significant transfer of funds from the fee account associated with the memecoin launch platform Pump.fun to the Kraken cryptocurrency exchange.
Solana Price Bounces Back After Dip to $189
Prior to this increase, Solana had dipped to around $189 at approximately 5:00 pm UTC on January 1st. However, its price began to rise shortly after 6:00 pm UTC, following the transfer of SOL tokens from Pump.fun’s fee account to Kraken.
Pump.fun Transfers $55 Million Worth of SOL to Kraken
According to Solscan data, Pump.fun made two deposits to Kraken on January 1st. The first deposit transferred approximately $22.8 million worth of SOL at 4:37 pm UTC, while the second transfer worth around $32.7 million occurred at 5:45 pm UTC.
Pump.fun’s Contribution to Solana’s Sell Pressure
It has been noted that Pump.fun has contributed significantly to Solana’s sell pressure in 2024. As of now, the memecoin launch platform has deposited over $303 million worth of SOL to Kraken and sold more than $41 million worth of SOL tokens, as per data from Lookonchain.
Growing Anticipation for a US Spot Solana ETF
The increasing anticipation for the approval of a United States spot Solana exchange-traded fund (ETF) has led many investors to believe that Solana’s price may reach $400 in 2025. This prediction is based on historical chart patterns and growing expectations for the first US spot Solana ETF.
Polymarket Data Shows High Likelihood of US Spot Solana ETF Approval
According to Polymarket data, the likelihood of a US spot Solana ETF approval stands at approximately 76%. Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 network Lumio, commented on this prediction:
"Since it is still very uncertain, an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in."
Companies Vying for Spot Solana ETF Approval
Several companies, including asset management giants VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, are vying for spot Solana ETF approval. The deadline for Grayscale’s Solana ETF application is January 23rd, while the four other applicants expect a preliminary decision by January 25th.
Brazil’s First Solana ETF Sets Precedent for Global Jurisdictions
On August 7th, Brazil approved its first Solana ETF, setting a precedent for other global jurisdictions. This development has fueled growing anticipation for a US spot Solana ETF, with trader expectations driving up Solana’s price.
Solana Climbs Above $230 Following Growing Anticipation for SOL ETF
On December 11th, Solana climbed back above $230, driven by growing trader anticipation for a SOL ETF and Bitwise setting a $750 price target for Solana. As the anticipation for a US spot Solana ETF continues to grow, investors are left wondering whether Solana will reach its predicted price of $400 in 2025.
Conclusion
The recent transfer of funds from Pump.fun’s fee account to Kraken has contributed significantly to Solana’s price increase. However, the growing anticipation for a US spot Solana ETF remains a key driver behind Solana’s potential price growth in 2025. As more investors bet on the approval of a US spot Solana ETF, it is essential to monitor developments closely and consider the potential impact on Solana’s price.
Solana: Expectation Versus Reality
As the anticipation for a US spot Solana ETF continues to grow, investors are left wondering whether Solana will meet its predicted price target of $400 in 2025. With several companies vying for spot Solana ETF approval and growing trader expectations driving up Solana’s price, it is essential to monitor developments closely and consider the potential impact on Solana’s price.
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