Solana ETFs Potential: Could the Launch of Donald Trump’s Memecoin Set the Stage?
Undoubtedly, Solana[SOL] has established dominance in the world of memecoins, powering 50% of the top ten memecoins through its blockchain infrastructure.
The recent surge in popularity stemming from the “Trump bomb” incident has showcased the remarkable strength of Solana. As we kick-start 2025 with such momentum, could this be the year we witness the emergence of a dedicated Solana ETF?
Opportunity Knocking
In an unforeseen turn of events, Solana experienced a notable 19% surge within a single day – marking its most significant leap in history. This surge wasn’t by chance. Just a day ahead of the inauguration of President-elect Trump, his team officially delved into the realm of cryptocurrency. The market’s response to this move was nothing short of remarkable.
Within a mere 36 hours, a new memecoin titled Official Trump [TRUMP] skyrocketed by an astonishing 28,000%, securing the top position on the Solana leaderboard with a market cap of $12 billion. However, the excitement didn’t end there.
Shortly after, First Lady Melania Trump also stepped into the action, introducing her memecoin, [MELANIA]. This coin swiftly surged by over 24,000%, reaching $12.63 at the time of publication, clinching a market cap of $5.2 billion and securing the fourth position on Solana’s leaderboard.
These coins share more than just their meme-centric nature. Their introduction signals the first concrete step by the Trump administration into the crypto space.
Of particular significance is the choice of Solana as the launchpad for these coins.
The impact on Solana’s value was immediate, hitting an all-time high of $295.83, with a 24-hour DEX volume record of $23.7 billion. The collective market cap of all Solana-based memecoins surged by 30%, reaching $30.8 billion at the time of writing.
Unsurprisingly, discussions surrounding the possibility of a Solana ETF have resurfaced. With Bitcoin and Ethereum ETFs already reshaping the landscape, could Solana be the next in line?
Solana ETF: Moving Towards Reality?
But why Solana? Its technological superiority is evident. Boasting 4,392 TPS (Transactions per second) compared to Ethereum’s 12-15, Solana’s speed is a compelling advantage. In the realm of memecoins where rapid shifts are the norm, promptness is key.
Despite the significant boost from the TRUMP and MELANIA coin launches propelling its market cap to $140 billion, Solana still falls short of Ethereum’s minimum market cap of $180 billion dating back to two years ago. In contrast, it remains quite distant from Ethereum’s current market cap of $407 billion.
So, what’s holding back the ETF scenario? The narrative includes ETFs as a major element. Look at Bitcoin: following the election last year, it recorded a $1.3 billion inflow – its largest to date. Ethereum also saw substantial capital inflows as retail investors capitalized on the “Trump pump.”
While Solana didn’t lag behind, soaring by 11.99% and nearly matching Ethereum’s 12.37% rise, envision the possibilities if Solana had its own ETF. Institutional investments might have poured in, further amplifying its growth.
Nevertheless, it’s not too late. The recent TRUMP incident directly challenges the SEC’s stance on Solana ETFs, and the market’s response speaks volumes. With Trump potentially returning to the White House, the likelihood of a Solana ETF is higher than ever, positioning Solana as a cryptocurrency to observe closely in 2025.