Solana Price Surges Above $200 After $55M SOL Sale by Pump.fun
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Written by
Yana Levkovich - Updated 2025-01-02 12:21:02
The price of Solana (SOL) rose by more than 10% after Pump.fun executed a $55 million transfer of SOL tokens to the Kraken cryptocurrency exchange. This sharp rebound occurred shortly after SOL had dipped to $189, with the price climbing back above $200 on January 1.
The recovery began around 6:00 PM UTC, approximately an hour after the Pump.fun fee account completed the second of two major deposits to Kraken. According to blockchain data, the first transfer, totaling $22.8 million, occurred at 4:37 PM UTC, followed by a $32.7 million transaction at 5:45 PM UTC.
Ongoing Sell Pressure from Pump.fun
Pump.fun, a memecoin launch platform, has contributed significant selling pressure on Solana during 2024. The platform has deposited over $303 million worth of SOL tokens to Kraken, selling more than $41 million of its holdings. Blockchain analytics platforms have closely monitored these activities.
Potential Path to $400
Solana’s price may be poised for further growth, with some analysts predicting a potential rise to $400 by 2025. This optimism is partly driven by the anticipation of the first United States-based spot Solana exchange-traded fund (ETF).
The likelihood of a Solana ETF approval in the U.S. is gaining traction. A leading decentralized prediction market estimates a 76% chance of approval. Industry experts believe an ETF would positively impact SOL’s price, as it has yet to be fully factored into the market.
Prominent asset management firms such as VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital are seeking approval for a Solana ETF. Deadlines for these applications vary, with Grayscale’s submission set for review by January 23 and decisions for other applicants expected by January 25.
Globally, progress on Solana ETFs has already begun. Brazil approved its first Solana ETF in August 2024, setting a benchmark for other jurisdictions to follow.
Solana’s price saw another significant surge in December 2024, climbing above $230. This rally was fueled by growing trader interest in a potential ETF and Bitwise’s optimistic price target of $750 for SOL.
With increasing interest from institutional investors and potential regulatory approvals, Solana continues to capture the attention of traders and analysts alike.
