Solana price has formed an ascending channel as its demand among market participants jumped. SOL jumped from a low of $95.40 in April to $174.30, an 83% increase. This recovery may continue as the Solana ecosystem growth continues.
Staked Solana ETF inflows are jumping
Solana price has held steady this month as data show that there is strong demand for the recently launched REX-Osprey SOL + Staking ETF (SSK).
SSK is a Solana ETF that lets users to benefit from its price action and its staking returns. Data shows that staked Solana earns a return of over 7.5%, which is higher than that of other cryptocurrencies.
The fund invests 56% of its assets on Solana and 41% of its assets on the 21Shares Solana Staking ETP. The remaining funds are invested in LSD Solana and US government bonds.
Data show that the SSK ETF has gained over $135 million in assets per month since its launch. It has had strong inflows in each week since its inception, a sign of sustained demand from American investors.
The fund’s inflows mirror those of the spot Bitcoin and Ethereum ETFs, which have had substantial inflows in the past few months. Data shows that Bitcoin ETFs have added over $55 billion in inflows, while Ethereum funds have recently crossed the $9 billion.
The fund’s success indicates strong demand for Solana ETFs among investors. This means that the other funds, which will likely be approved by the Securities and Exchange Commission (SEC) will also see substantial inflows.
The SSK ETF has a total annual operating expense of 1.40%, much higher than the other proposed ETFs. This high expense ratio will be offset by the fact that it has staking feature.
Solana ecosystem is thriving
Third-party data shows that key parts of the Solana ecosystem are doing well. First, Solana is the most active blockchain in the crypto industry. Its active transactions jumped by 66% in the last 30 days to over 2.53 billion, much higher than other chains, combined. This growth helped Solana’s fees to jump by 41% to over $34 million, making it the third-most profitable chain after Tron and Solana.
Another metric shows that the stablecoin growth gained steam. The total supply of all stablecoins in the network jumped by 2% in the last 30 days to $10.9 billion.
Further data shows that the number of stablecoin transactions jumped by 13% to 261.1 million. The adjusted volume of all these stablecoins jumped to $162 billion, while the number of addresses rose by 21% to 4.2 million.
More data shows that the total value locked (TVL) has jumped in the last 30 days. It soared by 15% to over $21.7 billion, with the top players in the industry being Kamino, Jito, Jupiter, and Sanctum.
Solana price technical analysis
The daily chart shows that the Solana price has jumped in the past few months, moving from a low of $95.40 in April to the current $174.95.
SOL price has formed an ascending channel and is now slightly above the lower side. It has also moved above the 38.2% Fibonacci Retracement level.
Therefore, the token will likely continue rising as bulls target the key resistance at $200. A move above the psychological point at $200 will point to more gains, potentially to $250.
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