If any crypto project had a successful July 2024, it was Solana, which saw win after win. Fans of the token and the blockchain had endless reasons to celebrate last month as Solana became even more prominent within the industry.
But amidst all the celebrations are concerns about whether or not Solana can sustain the level of progress it has made in such a short time.
Solana’s Big Month
July 2024 saw a lot of developments in the Solana space. First, there were the rumours that it would be the next token to get a spot ETF. Bitcoin and Ethereum have already secured this major milestone and some believe that Solana will be next in line. This has not yet been confirmed but it certainly made a positive impact on the Solana price and further positioned it as a top crypto to watch.
Right now, the crypto space is hungry for the next token that will see record wins and this ins’t limited to Solana. From meme coins to legacy tokens, many assets are seeing record investment at presale and beyond. Just taking a look at the upcoming Binance listings as explained by Kane Pepi will show that there are more options than ever before.
There are also more things to do with the cryptos that are being invested in. One relatively new application is crypto betting, which has become quite popular. Cryptos might not be the first thing that springs to mind when you think of gambling but it has proven to be useful in that regard. Because they are decentralized assets, they can be spent with maximum privacy and control for their users. They’ve become very popular for this reason and only add to the appetite for crypto that tokens like Solana benefit from.
Solana also saw its DEX activity for July outpace Ethereum for the first time. Ethereum had always been the go-to for decentralized finance (DeFi) but Solana seemingly gave it a run for its money. Then we have to consider the NFT space, which has been making somewhat of a recovery over the last few months.
Solana’s NFT activity actually grew by 30% in July compared to June despite the overall NFT space facing some challenges. Just like with DeFi, Ethereum had been the top token for NFTs but Solana is seemingly gaining on it.
All of this activity has been reflected in the price of Solana, which started the month around the $147 price market before seeing a decline to below $123. But this dip didn’t last very long and by the last week of July, it had reached $193 before correcting slightly to $183. Still, these were some of its highest numbers in months and saw good news for Solana investors. Not only was the token profitable but it was showing its relevance in the blockchain and web3 space on multiple fronts. But with all this have come questions about the longevity of Solana’s high streak.
Can It Keep Up?
With all the success that Solana has seen in a single month, some are wondering whether the ecosystem has entered a new level of growth or if this is a flash in the pan. The answer to this lies in the potential longevity of the factors that contributed to this growth.
Looking at the ETFs, it will be a while before we know definitely if Solana will be getting one or not. Both VanEck and Cboe have applied for Solana spot ETFs and if they are approved, the token will almost certainly see sustained growth. The DeFi space has been consistent for years and if Solana can continue to deliver benefits like scalability and size, it will remain on a positive trajectory. The NFT sector’s comeback is not yet set in stone and some of this progress will depend on major upcoming NFT launches being a success.
In terms of the overall crypto industry, it is a mixed bag. Yes, we are in a period of sustained growth and optimism but things swing back and forth all the time. Solana’s growth could be stalled if we enter another winter but that is unlikely to happen soon.
Conclusion
The recent developments with Solana show that no matter how big a crypto ecosystem already is, there is seemingly endless room for even more growth. Solana has become a bigger force in the DeFi and NFT space and might even get its own spot ETF soon. While no one can say for sure if it will stay on this path, it has cemented its spot as one of the most prominent crypto projects of the moment.
