Crypto News Report:
Solana has solidified its position as one of the cryptocurrency giants. With the other two giants already having launched or about to launch spot ETFs, Solana is likely to follow suit in the near future, potentially with the largest impact on SOL to date.
Solana — Syncing the World at Lightspeed
Founded by Anatoly Yakovenko and Raj Gokal in 2018 and launched in 2020, Solana is a proof-of-stake blockchain designed for high performance and mass adoption. With ultra-low transaction costs, a wide array of decentralized applications, and a vibrant community of users and developers, Solana has amassed nearly 300 billion transactions and over $40 billion in total locked value.
Additionally, Solana continues to stand out in numerous projects, recent highlights including a plethora of high-profile token launches, various projects migrating to Solana, key innovations such as token extensions, and unique use cases like order books, batch NFTs, DePINs, and memecoins.
Solana’s success is rooted in its outstanding technology, providing sustainable competitive advantages, notably in three particularly significant aspects.
Firstly, Solana’s historical proof provides validators with a time concept, akin to alternating mobile signal towers to avoid interference. Historical proof enables validators to generate blocks when it’s their turn, without the network needing to achieve current block consensus, thus offering significant speed and scalability advantages.
Secondly, unlike the single-threaded virtual machines behind current cryptocurrencies, Solana supports parallel transaction processing. This not only drastically increases throughput but also harnesses the primary source of computational speed-ups—today’s performance gains stem from adding more cores rather than enhancing each core’s performance.
Lastly, while Solana historically demanded high hardware and bandwidth requirements, sacrificing decentralization to optimize speed and security, decreasing costs naturally benefit Solana, possibly becoming the first project to truly resolve the blockchain trilemma and ultimately realize its vision of synchronizing the global state at lightspeed.
Undervalued Cryptocurrency ETFs Likely to Increase Further
As Solana cements its position following Bitcoin and Ethereum, both having (or soon to have) launched US spot ETFs, a natural question arises—will Solana be next? Spot ETFs are currently pivotal drivers of prices in this cycle, making this question particularly pertinent.
Simply put, within the current framework, the path to launching US spot digital asset ETFs is clear: there needs to be a federally regulated futures market (currently absent except for Bitcoin and Ethereum), the futures market needs to demonstrate years of relevance, and futures ETFs need approval before spot products can be considered.
In other words, additional spot digital asset ETFs are not expected in the near term. However, we believe this severely underestimates the potential for change.
Indeed, change is already underway, with Donald Trump’s recent support for the crypto industry leading Democrats to relax their stance on digital assets in a tense election year.
While unimaginable just a month ago, we have seen both houses of Congress pass a bipartisan measure to overturn the controversial SEC cryptocurrency accounting policy (SAB 121) and the House pass a comprehensive digital asset regulatory framework (FIT21).
Though current legislative and regulatory structures are unlikely to adopt rules allowing for various spot digital asset ETFs, the Trump administration and liberal SEC commissioners could achieve this goal, especially through the Digital Asset Market Structure Act defining securities and commodities.
Not only is this scenario possible, but it may even become a reality