Solana experienced a 6% surge on Thursday, outperforming major tokens such as Bitcoin and Ethereum. This rally was sparked by the debut of the world’s first Solana spot exchange-traded fund (ETF) on the Toronto Stock Exchange. The ETF, launched by Purpose Investments under the ticker CSOL, provides investors with secure and compliant access to Solana without the need to manage private keys or decentralized wallets. This move signals growing institutional interest in Layer-1 blockchain alternatives and mainstreaming Solana exposure in North American financial markets.
The launch of the Solana ETF comes at a time when central banks around the world are signaling dovish policies, which is increasing risk asset sentiment. With the European Central Bank preparing for rate cuts and pressure mounting on the U.S. Federal Reserve to ease rates, liquidity conditions are becoming more favorable for increased crypto demand in the coming weeks. This supportive macroeconomic environment is contributing to the positive price momentum seen in Solana and other alternative cryptocurrencies.
Solana’s ETF debut is seen as a significant milestone in the Layer-1 DeFi ecosystem battle, as it reinforces the project’s institutional credibility. This move is particularly noteworthy as Ethereum, the dominant player in this space, has been facing challenges with high gas fees and divisive upgrades. The increased staking deposits on the Solana network following the ETF announcement have helped to remove a significant amount of supply from circulation and support the upward price pressure during periods of high market demand.
The recent repeal of a restrictive DeFi framework by President Trump has also fueled demand for alternative cryptocurrencies like Solana. With its scalability, low-cost transactions, and growing developer and institutional interest, Solana is emerging as a viable alternative to Ethereum. This development, coupled with the favorable market conditions and technical indicators pointing to a bullish trend, has led to a 7% price increase for Solana on Thursday, while Ethereum continues to struggle below the $1,600 zone.
Looking ahead, analysts are forecasting a bullish breakout for Solana, with a potential price target near $265 based on a falling wedge pattern on the daily chart. The breakout above $130, coupled with the reclaiming of the 50-day Simple Moving Average (SMA) as support, indicates a positive trend for SOL. The Relative Strength Index (RSI) shows rising momentum with room for further gains, suggesting a path towards the $265 target if Solana can sustain above the 200-day SMA near $166. However, failure to hold above $130 could invite bearish pressure and push SOL back towards the $120 price zone.
