Solana ETF hype: Checking the impact on Solana’s memecoins

• SEC’s Ethereum ETF approval prompts anticipation for Solana ETFs.
• Solana’s rise impacts Ethereum-based memecoins.

As we celebrate the news of the United States Securities and Exchange Commission (SEC) greenlighting the Ethereum [ETH] spot Exchange Traded Funds (ETFs), attention is now shifting to Solana [SOL]. Is a Solana ETF likely in the near term? 

Talks around Solana ETF 

Earlier, CNBC ‘Fast Money’ trader Brian Kelly, and Daniel Yan, co-founder of Matrixport, hinted that a Solana ETF could be next in line. This has sparked excitement within the community as highlighted in a tweet by an X user, ‘borovik’.

Source: borovik/X

On the contrary, not everyone was happy with this news. According to some, the approval of an Ethereum ETF might be a net negative for the market as highlighted by ‘The Bitcoin Therapist’ in his tweet,

Source: The Bitcoin Therapist/X

However, despite the excitement, this news did not immediately impact SOL’s price, which declined by 6.17% in the last 24 hours.

This brings up another question: If Solana ETFs get approved, what impact will this have on Solana-based memecoins? To answer this, AMBCrypto analyzed the impact of ETH ETF approval on two major Ethereum-based memecoins.

Ethereum memecoins show no gains

Starting with Dogecoin [DOGE], which saw a 5% decline in the last 24 hours. This meant the ETH ETF approval did not translate into a rally for DOGE.

However, Coinalyze data at press time showed a 4.71% increase in Open Interest in the past 24 hours, suggesting growing market activity and investor interest.

Shiba Inu [SHIB] experienced a 6% decline in the past 24 hours. With the Relative Strength Index (RSI) at 46, confirming the downtrend, SHIB also displayed no immediate positive response to the ETF news.

Source: TradingView

Shifting focus to Santiment’s social volume data and weighted sentiment data, it can be seen that comments on DOGE and SHIB have decreased as well.

However, the overall sentiment remained largely positive, which indicates that investor interest and engagement are still present, even if prices are currently declining.

Source: Santiment 

Simultaneously, Solana-based memecoins such as Dogwifhat [WIF], Bonk [BONK], and Book of Meme [BOME] mirrored this trajectory.

In conclusion, it’s worth noting that the Ethereum ETF approval did not yield a positive impact on the Ethereum memecoin market.

Therefore, as we navigate through evolving market dynamics, it will be interesting to observe whether the outcome of a SOL ETF for Solana-based memecoins leans towards positivity or negativity.