Solana Price News: SOL Rises as Spot ETF Surpasses $200M in Assets – $300 Next?

Solana (SOL) has gone up by nearly 3% in the past 24 hours and has accumulated a 28% gain over the last 30 days as it plays catch-up with Ethereum (ETH) and BNB Coin (BNB).

Altcoin season has definitely started and Solana’s break above $200 confirms it.

The Rex-Osprey Solana + Staking ETF (SSK) shows that buying interest is increasing as the fund has already surpassed the $200 million mark in assets under management.

REX-Osprey Solana + Staking ETF (SSK) Assets – Source: Rex-Osprey Website

This is an important milestone for what has been the first spot ETF linked to an altcoin other than ETH that the U.S. Securities and Exchange Commission (SEC) has approved.

Apart from providing exposure to Solana, this ETF also distributes the rewards collected from staking the token to its holders.

The annual percentage yield (APY) offered for staking SOL currently stands at around 9%. This makes it an attractive option to generate passive income at a point when the Federal Reserve is preparing to cut rates for the first time this year.

Solana DEX volumes have surpassed the $30 billion mark for three consecutive weeks as tokens like Fartcoin (FARTCOIN) have recovered from their latest pullbacks.

SOL Could Rise to $375 If It Breaks Out of Consolidation

Trading volumes for SOL have jumped by 12% in the past 24 hours and sit above the historical average, currently accounting for 9%.

SOL/USD Daily Chart – Source: TradingView

SOL is about to break a consolidation rectangle that has been in play for days. A bullish breakout could signal the beginning of the token’s next leg up.

Following the footsteps of its other two competitors. SOL could soon rise to $280 if we get a clean break above $220 meaning a 27% upside potential in the near term.

The Relative Strength Index (RSI) is still in consolidation and has been for a while, which confirms that SOL is in a stage of accumulation. This further increases the odds of an explosive move if we get out of this range.

The gains produced by the latest uptrend – around 120% – could be used as a reference to estimate how high SOL can go if the rally accelerates. If this second leg delivers similar gains – or better as it often happens based on Elliott Wave theory – it means that SOL could rise to $375 at least during this cycle.

On-Chain Data Flashes Bearish Divergence

Despite this bullish outlook for SOL, traders should be aware that on-chain metrics have not been performing as one would expect in a bull market.

Daily Active Addresses and Transactions (YTD) – Source: Arthemis

Year-to-date (YTD) data from Arthemis indicates that both daily transactions and daily active addresses (DAAs) remain on a strong downtrend.

We can see a 33% drop in DAA and a 25% drop in daily TXs when measured on a weekly basis. This indicates that trading activity within this network is plummeting. One reason for this could be that Ethereum (ETH) has improved its operational framework through the successful implementation of Pectra.

Lower gas fees and improved scalability could endanger Solana’s bid to eventually dethrone the industry’s largest smart contracts platform by total value locked (TVL). That said, the Solana community recently passed an important technical upgrade called Alpenglow that would push the network’s transaction processing speed near the internet’s pace.

The battle between these two blockchains will continue for years and we could be at a critical juncture where the volume of tokenized real-world assets (RWAs) coming to the blockchain may determine who wins this race.