The price of the Solana (SOL) token plummeted last week due to a massive sell-off by the Pump.fun platform.
Pump.fun token sell-off
Solana's price fell over 12% in the week leading up to 11:06 am UTC, Sept. 4, to trade at $128. The token is down 3.8% on the daily chart, according to Cointelegraph data. The price drop occurred after the Pump.fun fee account sold another $1.38 million worth of SOL tokens, as confirmed by a Lookonchain post on Sept. 3.
Impact of memecoins on Solana price
The current memecoin craze on the Solana platform could be pressuring the token’s price, according to popular crypto trader and podcast host Luke Martin. He noted that Solana's price rally turned into a crab walk as soon as users started mass launching meme tokens on Pump.fun.
Possible ETF impact on Solana
Solana could be the next major cryptocurrency to receive a spot ETF listing in the US. Recently, the first Solana ETF was approved in Brazil. Alejo Pinto, former IBM blockchain growth lead, believes that a potential ETF approval in the US could positively impact Solana's price since the probability is low and thus not priced in.
While Solana is currently under pressure due to massive token sell-offs and the popularity of memecoins, a potential ETF approval could be a significant growth catalyst in the future.
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