Memecoins
Solana ETF Hype: Checking the Impact on Solana Memecoins
- SEC Approval of Ethereum ETF Raises Anticipation for Solana ETFs.
- The rise of Solana impacts Ethereum-based memecoins.
As we celebrate the green light announcement from the United States Securities and Exchange Commission (SEC), Ethereum [ETH] spot, Exchange Traded Funds (ETFs), attention is now focused on Solana [SOL]. Is a Solana ETF likely in the short term?
Discussions around the Solana ETF
Earlier, CNBC’s ‘Fast Money’ trader Brian KellyAnd Daniel Yan, co-founder of Matrixport, has hinted that a Solana ETF could be next in line. This sparked enthusiasm within the community, as highlighted in a tweet from X user, “borovik”.
Source: borovik/X
On the contrary, this news did not please everyone. According to some, the approval of an Ethereum ETF could be a net negative for the market, as “The Bitcoin Therapist” points out in his tweet,
Source: The Bitcoin/X Therapist
However, despite the excitement, this news did not have an immediate impact on the price of SOL, which fell by 6.17% in the last 24 hours.
This raises another question: If Solana ETFs are approved, what impact will this have on Solana-based memecoins? To answer this question, 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% drop in the last 24 hours. This meant that the approval of the ETH ETF did not translate into a rally for DOGE.
However, Coinanalyze Data at press time showed a 4.71% increase in open interest over the past 24 hours, suggesting increasing market activity and growing investor interest.
Shiba Inu [SHIB] saw a 6% drop in the last 24 hours. With the Relative Strength Index (RSI) at 46, confirming the downtrend, SHIB also showed no immediate positive response to the ETF news.
Source: TradingView
Focusing on Santiment’s social volume data and weighted sentiment data, we can see that comments on DOGE and SHIB have also decreased.
However, overall sentiment remained largely positive, indicating that investor interest and engagement is still present, even though prices are currently falling.
Source: Santiment
Simultaneously, Solana-based memecoins such as Dogwifhat [WIF], Bonk [BONK]and Meme Book [BOME] reflected this trajectory.
In conclusion, it should be noted that the approval of the Ethereum ETF did not have a 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.