- The approval of the Ethereum ETF by the SEC creates anticipation for Solana ETFs.
- The rise of Solana has implications for Ethereum-based memecoins.
As we celebrate the news that the US Securities and Exchange Commission (SEC) is greenlighting Ethereum [ETH] spot Exchange Traded Funds (ETFs), attention now shifts to Solana [SOL]. Is a Solana ETF Likely in the Short Term?
Conversations around Solana ETF
Previously CNBC ‘Fast Money’ trader Brian KellyAnd Daniel Yanco-founder of Matrixport, hinted that a Solana ETF could be next in line. This has sparked excitement within the community, as evidenced by a tweet from an X user, ‘borovik’.
Source: borovik/X
On the contrary, not everyone was happy with this news. According to some, the adoption of an Ethereum ETF could be a net negative for the market, as highlighted by ‘The Bitcoin Therapist’ in his tweet:
Source: The Bitcoin Therapist/X
However, despite the excitement, this news did not immediately impact SOL’s price, which fell 6.17% over the past 24 hours.
This raises another question: if Solana ETFs are approved, what impact will this have on Solana-based memecoins? To answer this, AMBCrypto analyzed the impact of ETH ETF approval on two major Ethereum-based memecoins.
Ethereum memecoins show no gains
Starting with Dogecoin [DOGE], which saw a 5% decline in the past 24 hours. This meant that the ETH ETF approval did not translate into a rally for DOGE.
However, Coinalyse Data at the time of writing showed a 4.71% increase in Open Interest over the past 24 hours, indicating growing market activity and investor interest.
Shiba Inu [SHIB] experienced a 6% drop in the last 24 hours. With the Relative Strength Index (RSI) at 46, confirming the downward trend, SHIB also showed no immediate positive reaction to the ETF news.
Source: TradingView
Shifting the focus to Santiment’s social volume data and weighted sentiment data, it can be seen that comments on DOGE and SHIB have also decreased.
However, overall sentiment remained largely positive, indicating that investor interest and involvement is still present, even though prices are currently falling.
Source: Santiment
At the same time, Solana-based memecoins such as Dogwifhat [WIF]Bonk [BONK]and Book of Meme [BOME] reflected this trajectory.
In conclusion, it is worth noting that the adoption of Ethereum ETF has not brought any positive impact on the Ethereum memecoin market.
Therefore, as we navigate the evolving market dynamics, it will be interesting to observe whether the outcome of a SOL ETF for Solana-based memecoins leans towards positivity or negativity.