Major transaction triggers a 10% rebound; experts predict SOL may hit $400 by 2025.

Solana Rebounds Following Pump.fun’s $55M SOL Sale

Solana (SOL) witnessed a remarkable 10% price recovery, climbing above $200 shortly after Pump.fun transferred $55 million worth of SOL to the Kraken cryptocurrency exchange.

The price dip to $189 on Jan. 1 at 5:00 PM UTC was short-lived. Less than an hour later, at 6:00 PM UTC, Solana began to rally. The recovery was triggered by two significant transactions by Pump.fun, a memecoin launch platform.

Data from Solscan shows Pump.fun deposited $22.8 million worth of SOL into Kraken at 4:37 PM UTC, followed by a second transfer of $32.7 million at 5:45 PM UTC.

Despite its role in applying sell pressure on Solana throughout 2024, Pump.fun’s activities appear to have sparked renewed investor interest. To date, the platform has transferred over $303 million worth of SOL to Kraken and sold $41 million worth of tokens, according to Lookonchain.

Future Projections: Could SOL Hit $400 in 2025?

Market experts and historical trends suggest that Solana’s price could soar to $400, driven by anticipation of a United States spot Solana exchange-traded fund (ETF) approval.

Polymarket, a decentralised prediction platform, indicates a 76% probability of a US spot Solana ETF being approved before the end of 2025. Such an approval could significantly boost SOL’s price.

“An ETF approval in the US would have a positive price impact on Solana since the probability is currently low and not fully priced in,” said Alejo Pinto, founder of Solana layer-2 network Lumio and former IBM blockchain growth lead.

Companies in the Running for Solana ETF

Several asset management firms, including VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, are vying for approval of a spot Solana ETF.

The US Securities and Exchange Commission (SEC) is expected to make preliminary decisions on the ETF applications by January 25. Grayscale’s application deadline is set for January 23.

Brazil has already approved its first Solana ETF, setting a precedent on August 7, 2024, for other jurisdictions to follow.

Recent Price Momentum

The anticipation of an ETF approval has already fuelled Solana’s recent gains. On December 11, SOL surged past $230, supported by growing investor interest and Bitwise’s optimistic price target of $750.

As Solana continues to attract attention in the crypto market, its resilience and the potential for ETF approval could define its trajectory in 2025. For now, the blockchain ecosystem remains a key player in the evolving cryptocurrency landscape.