Markets
July Could Propel Solana to Third-Largest Cryptocurrency by Market Cap, Says Zeta Markets Founder
Key takeaways
- Solana’s market cap growth is fueled by recent ETF filings.
- Tristan Frizza predicts a strong market for Solana in the coming months.
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Solana (SOL) is up 35% in 2024 and is currently the fifth-largest crypto by market cap. Last week, asset management firm VanEck filed for the first time spot SOL exchange-traded fund (ETF) in the United States, and the movement was followed quickly by 21 shares. This news was enough to make SOL one of the best performing cryptocurrencies over the past seven days among the 20 largest by market capitalization.
Tristan Frizza, founder of decentralized exchange Zeta Markets, sees a favorable July for Solana and the cryptocurrency market as a whole. “Despite recent market fluctuations, overall macroeconomic conditions for crypto appear strong and we expect a positive trend to materialize in the coming months,” he told Crypto Briefing.
Frizza points out that Bitcoin dominance has fallen more than 5% over the past few days, from 52.8% on June 25 to around 50% at the time of writing, a move that generally encourages market diversification, prompting investors to explore other digital assets. .
Therefore, in this favorable landscape, the founder of Zeta Markets said that Solana is poised to become the third largest crypto by market capitalization due to its “unmatched ability to handle high trading volumes with low fees low, real use cases and an extremely active ecosystem.
“This is an ideal environment for both retail and institutional investors, especially after VanEck’s application for the first Solana ETF. This milestone clearly signals that SOL is the next ETF candidate after BTC and ETH. It also opens up the possibility of SOL being classified as a commodity,” he added.
While approval of a spot SOL ETF may take some time, it reinforces the positive outlook for the Solana ecosystem, which will “undoubtedly” continue to see more interest and usage. “Overall, the potential for more crypto-friendly administrations could be a tailwind for the market,” Frizza concluded.
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