Solana’s price experienced a notable rebound, climbing over 10% to exceed $200. This surge occurred shortly after Pump.fun completed its second transaction, transferring $55 million worth of Solana (SOL) to the Kraken cryptocurrency exchange. This upward movement reversed a previous dip that saw Solana priced around $189 at 5:00 pm UTC on January 1. The rally commenced approximately an hour after Pump.fun’s associated fee account executed the transaction to Kraken at 6:00 pm UTC.
Data indicates that Pump.fun conducted two significant transfers on January 1. The first transaction involved the movement of $22.8 million worth of SOL at 4:37 pm UTC, followed by a second transfer of $32.7 million at 5:45 pm, according to Solscan. Throughout 2024, Pump.fun’s activities exerted considerable selling pressure on Solana, with over $303 million transferred to Kraken and sales exceeding $41 million in SOL tokens, as reported by Lookonchain.
Looking ahead, Solana’s price may potentially reach $400, driven by historical chart patterns and escalating anticipation for the first United States spot Solana exchange-traded fund (ETF). Optimism is growing among investors regarding the approval of this ETF by the end of 2025. The probability of a US spot Solana ETF is projected at 76%, based on data from the decentralized predictions market, Polymarket.
Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 network Lumio, suggests that a US ETF approval could positively influence Solana’s price due to its low probability and lack of current market pricing. Competitors for a Solana ETF include asset managers such as VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital. The deadline for Grayscale’s application is January 23, with other preliminary decisions expected by January 25.
Brazil’s approval of its first Solana ETF on August 7 established a precedent for similar developments in other global markets. Solana’s value rose above $230 on December 11, spurred by growing expectations for a SOL ETF and Bitwise’s ambitious $750 price target for the cryptocurrency.
