- Solana surges 15% as Trump tariff rollback and SEC’s Paul Atkins appointment fuel ETF optimism.
- Traders price in 81% odds of a Solana ETF by the end of 2025, with staking demand and network growth supporting bullish targets.
Solana (SOL) saw a sharp rebound, climbing from $100 to $115 in a single day as market conditions improved. Two major catalysts drove the rally: President Donald Trump’s easement of the global trade tariffs and the return of crypto-friendly SEC official Paul Atkins. With strong staking metrics and rising network activity, analysts believe Solana could be primed for a major breakout.
Why Solana Could Surge
Solana’s price surged over 15% on Thursday, outpacing Bitcoin and Ethereum. The rally began after Trump rolled back tariffs, easing inflation fears and boosting riskier assets like crypto. Later, news that Paul Atkins, a pro-crypto former SEC commissioner, was returning to the agency further lifted sentiment.
Polymarket traders now assign an 81% chance to a Solana ETF approval by the end of 2025, a move that could mirror Bitcoin’s post-ETF boom.
An ETF, or Exchange Traded Fund, would allow investors to invest in Solana without directly owning the cryptocurrency. Paul Atkins, a former SEC commissioner known for being crypto-friendly, has returned to the SEC, increasing hopes for the approval of a Solana ETF. “We welcome Paul Atkins as the next Chairman of the SEC.
A veteran of our Commission, we look forward to him joining with us, along with our dedicated staff, to fulfill our mission on behalf of the investing public,” stated the SEC in a post yesterday.
The Path to $1,000
A Solana ETF could open the door to significant institutional investment, much like what happened with Bitcoin’s rally following its ETF launch. For SOL to reach $1,000, a 7x increase, three key factors would need to align. First, regulatory approval is essential. With Ethereum ETFs potentially paving the way, the SEC Chair Atkins could accelerate approvals for altcoins.
Second, macroeconomic conditions need to remain favorable. Continued pro policies from the Federal Reserve and tariff cuts under the Trump administration could keep liquidity flowing into crypto markets. Third, Solana’s network must continue to grow and scale effectively, given its past technical issues.
On the supply side, things are looking promising with token unlocks slowing and staking rewards increasing, which helps tighten supply. If ETF inflows start coming in, that limited supply could significantly amplify price movements. Solana’s network is also very active, with over 1.3 million daily active addresses and high trading volumes on decentralized exchanges. This high level of activity indicates a strong demand for Solana’s blockchain space.
Solana needs to maintain its strong network activity, benefit from a stable economic environment, and gain regulatory clarity in order to reach its goal. The upcoming Q3 earnings season will be crucial, as fintech companies may announce plans to file for Solana ETFs. If Bitcoin and Ethereum ETFs continue to succeed, Solana could follow a similar path to significant growth. Today, SOLANA is trading at $113.68, up 8.78% in the last 24 hours with a trading volume of $6.07B.