Solana’s (SOL) price surged by 10%, climbing above $200, after Pump.fun, a memecoin launch platform, completed a significant transaction of $55 million worth of SOL to the Kraken exchange on 1 January.
The recovery followed a dip earlier in the day, with SOL briefly touching $189 at around 5:00 pm UTC. Within an hour of the second transfer, its price began to rise, reaching $206.81 by 6:00 pm UTC.
Pump.fun’s $55M SOL Transactions
According to Solscan data, Pump.fun made two substantial deposits to Kraken on 1 January. The first transfer, worth $22.8 million, occurred at 4:37 pm UTC. The second transaction, valued at $32.7 million, followed at 5:45 pm UTC.
SOL/USD, 1-hour chart. Source: TradingView
Pump.fun has significantly contributed to Solana’s sell pressure throughout 2024, depositing over $303 million worth of SOL to Kraken and selling more than $41 million worth of tokens to date, as reported by Lookonchain.
Despite this, the recent transactions appeared to fuel a positive market response, reversing Solana’s price decline and bolstering investor confidence.
SOL’s Path to $400 in 2025?
Looking ahead, analysts suggest Solana could reach $400, driven by historical chart patterns and rising optimism surrounding the approval of a spot Solana exchange-traded fund (ETF) in the United States.
The likelihood of a US spot Solana ETF approval stood at 76% on Polymarket, a leading decentralised predictions market. Industry experts believe such an approval could have a significant impact on SOL’s price.
“An ETF approval in the US would positively affect Solana’s price, as the current low probability is not yet factored in,” said Alejo Pinto, founder of Solana layer-2 network Lumio and former IBM blockchain growth lead.
ETF Developments Drive Investor Interest
Several major asset management firms, including VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, have filed applications for a spot Solana ETF. The US Securities and Exchange Commission (SEC) is set to review these applications, with key deadlines approaching in January 2025.
Grayscale’s application deadline is 23 January, while preliminary decisions for the other applicants are expected by 25 January.
Chances of a US Solana ETF. Source: Polymarket
Notably, Brazil approved its first Solana ETF on 7 August 2024, potentially setting a precedent for global markets. Anticipation around the ETF approval has already influenced Solana’s price; SOL climbed above $230 on 11 December 2024, following increased trader interest and Bitwise setting a $750 price target for the token.
A Strong Start to 2025 for Solana
The recent price rebound and growing optimism around a spot Solana ETF position SOL as a key player in the cryptocurrency market in 2025. While uncertainties remain, the potential for regulatory approvals and increased institutional investment could drive further growth in the coming months.
