Markets
July Could Boost Solana to Third-Largest Cryptocurrency by Market Cap, Says Zeta Markets Founder
Main conclusions
- Solana’s market cap growth is driven by recent ETF filings.
- Tristan Frizza predicts a strong market for Solana in the coming months.
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Solana (SOL) rose 35% in 2024 and is currently the fifth largest cryptocurrency by market capitalization. Last week, asset management firm VanEck archived for the first SOL spot exchange traded fund (ETF) in the US, and the movement was followed quickly by 21Shares. This news was enough to make SOL one of the best performing cryptocurrencies in the last seven days among the top 20 by market value.
Tristan Frizza, founder of decentralized exchange Zeta Markets, sees a favorable July for Solana and the crypto market as a whole. “Despite recent market fluctuations, overall crypto macro conditions appear strong, and we anticipate a positive trend to materialize in the coming months,” he shared with Crypto Briefing.
Frizza highlights that Bitcoin’s dominance has dropped more than 5% in recent days, from 52.8% on June 25 to around 50% at the time of writing, a move that typically encourages market diversification, leading investors to explore other digital assets. .
Therefore, in this favorable scenario, the founder of Zeta Markets stated that Solana is poised to become the third-largest cryptocurrency by market capitalization due to its “unmatched ability to handle high transaction volumes with low fees, real-world use cases, and an extremely active ecosystem.”
“It’s an ideal environment for retail and institutional investors, especially following VanEck’s bid for the first Solana ETF. This milestone clearly indicates SOL as the next ETF candidate after BTC and ETH. It also opens up the possibility of SOL being classified as a commodity,” she added.
While it may take some time for a spot SOL ETF to be approved, it does boost a positive outlook for the Solana ecosystem, which will “undoubtedly” continue to generate more interest and usage. “Overall, the potential for more crypto-friendly governance could be a tailwind for the market,” Frizza concluded.
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