Solana (SOL) Defies the Market to Post 4% Gains, Fueled by ETF Speculation

Solana has defied the broader crypto market's flat performance over the past 24 hours, posting 4% gains, while other major digital assets traded sideways.

Solana has outpaced the broader crypto market’s flat performance over the past 24 hours, posting 4% gains, while other major digital assets traded sideways.

The rally appears to be driven by mounting speculation that the US Securities and Exchange Commission (SEC) has asked potential Solana ETF issuers to update their S-1 registration. This has fueled hopes that SOL could be the first major altcoin to follow in Ethereum’s ETF footsteps.

Solana ETF Issuers Asked to Update S-1 Registration

According to multiple reports, the SEC has asked potential Solana ETF issuers to update their S-1 registration forms within the next 30 days. This move is a step closer to approving spot Bitcoin ETFs, with seven such applications pending.

Solana’s price has surged in response to the ETF rumors. The cryptocurrency is currently trading at $42.78, showcasing a 4% increase over the past 24 hours. In contrast, Bitcoin price has remained largely flat.

Sol Surges 7% Against BTC Since June 7

The value of the SOL/BTC pair has increased by 7% since June 7, confirming SOL’s relative strength against Bitcoin and growing investor interest in the asset. At press time, this stands at 0.0015 BTC.

The SOL/BTC pair measures the value of Solana relative to Bitcoin. It indicates how much BTC is needed to purchase one SOL. When the pair surges, SOL outperforms BTC, signaling stronger investor demand and momentum for the former in the broader market.

Moreover, on-chain data signals the growth of cautious optimism among SOL holders. According to Glassnode, the coin’s Net Unrealized Profit/Loss (NUPL) has entered the “Hope” phase. In this psychological zone, holders see modest profits and sentiment shifts toward early-stage bullishness.

This reinforces the narrative that SOL may be positioning itself as the altcoin to watch this summer.

Is the Stage Set for an Altcoin Summer?

As ETF talks intensify and SOL positions itself to outperform its peers, the question arises: can this momentum spark a broader altcoin rally?

For now, the Altcoin Season Index shows that the crypto market remains firmly in a BTC-dominated phase, dampening the prospects of an altcoin summer.

An altcoin season is considered underway when at least 775% of the top 50 altcoins outperform BTC over a three-month period. However, this is far from a reality. Only 20% of top altcoins have outperformed the leading coin over the past 90 days.

This underperformance suggests that a full-fledged altcoin season may still be far off.