On January 1st, Solana’s price experienced a significant surge after a substantial transfer of funds from Pump.fun’s fee account to the Kraken cryptocurrency exchange. The transfer amount was approximately $55 million, causing Solana’s price to increase by over 10% and break the $200 mark.
Solana Price Rises Above $200
After dipping to $189 around 5:00 pm UTC on January 1st, Solana’s price began to rise steadily at around 6:00 pm UTC. This uptrend was directly linked to the transfer of funds from Pump.fun’s fee account to Kraken. The increase in price can be attributed to the influx of new capital entering the market.
Pump.fun Transfers $55 Million Worth of SOL
According to Solscan data, Pump.fun made two deposits to Kraken on January 1st:
- First Transfer: $22.8 million worth of SOL was transferred at 4:37 pm UTC.
- Second Transfer: $32.7 million worth of SOL was transferred at 5:45 pm UTC.
These transfers demonstrate Pump.fun’s continued involvement in the Solana ecosystem and their efforts to facilitate the growth of the network.
Pump.fun’s Impact on Solana
Despite contributing significant sell pressure to Solana during 2024, Pump.fun has been instrumental in driving demand for SOL. The platform has deposited over $303 million worth of SOL to Kraken and sold more than $41 million worth of SOL tokens to date, according to Lookonchain data.
SOL Price to Hit $400 in 2025?
The growing anticipation for the first United States spot Solana exchange-traded fund (ETF) has sent shockwaves through the market. If approved, an ETF would provide institutional investors with a secure and regulated way to invest in SOL.
Historical chart patterns suggest that Solana may be on track to hit $400 in 2025, given the growing optimism surrounding the potential approval of a US spot Solana ETF.
ETF Approval: A Positive Price Impact
According to Polymarket data, the likelihood of a US spot Solana ETF stood at 76% as of January 1st. Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 network Lumio, commented:
"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
Several prominent companies are vying to become the first US spot Solana ETF, including:
- VanEck: A leading asset management firm with extensive experience in cryptocurrency investments.
- Grayscale: A well-established provider of digital assets and a pioneer in the field of cryptocurrency investment products.
- 21Shares: A Switzerland-based company specializing in cryptocurrency index funds and exchange-traded notes (ETNs).
- Bitwise: A prominent asset management firm offering a range of cryptocurrency-focused investment products.
These companies have filed applications for a spot Solana ETF, with Grayscale’s deadline being January 23rd and the other applicants expecting a preliminary decision by January 25th.
Brazil’s First Solana ETF: A Precedent
On August 7th, Brazil approved its first Solana ETF, setting a precedent for other global jurisdictions. This development has sparked hope that similar approvals will follow in other countries, further solidifying Solana’s position as a leading cryptocurrency.
Solana Climbs Above $230 on ETF Anticipation
As anticipation grows for the approval of a US spot Solana ETF, Solana’s price has climbed above $230. Bitwise’s price target of $750 for SOL has added to the optimism surrounding the potential ETF approval.
Conclusion
The transfer of funds from Pump.fun’s fee account to Kraken has sent Solana’s price surging, breaking the $200 mark. The growing anticipation for a US spot Solana ETF has further fueled the uptrend, with some analysts predicting that SOL may hit $400 in 2025. As the market continues to evolve, one thing is clear: Solana is on the rise.
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