This has been a very interesting week for Solana (SOL) and the broader cryptocurrency community. The week began with rumors of a Solana criminal investigation, but the week ended with Van Eck applying for the Solana spot trading fund.
Meanwhile, analysts are discussing the long-awaited altcoin season. As the market bottoms out, institutional investors such as BlackRock maintain strong interest in the tokenization of real assets (RWA). Binance continues to face regulatory issues and has been forced to suspend copy trading in the European Union (EU) region.
Rumors that Solana is under criminal investigation
This week started with some unsettling news from the cryptocurrency industry. Crypto Bittrud, an influential cryptocurrency figure, revealed that Solana may be under criminal investigation.
The timing of this investigation caused a wave of concern among investors after the SEC classified SOL as a security. Details of the investigation are unknown, but it could have significant implications for the future of altcoins.
“We're hearing rumors that SOL is investigating and a huge case is about to be revealed. It couldn't come at a worse time. Please pray for Solana if the rumors are true,” Bitlord noted .
Read more: How to Buy Solana (SOL) and Everything You Need to Know
The start of altcoin season as predicted by top analysts
Bitcoin's market dominance is undeniable, and it has reached all-time highs. However, individual investors are eagerly anticipating altcoin season.
Analyst Miles Deutscher pointed out that altcoins are not catching up with Bitcoin (BTC) . He says Bitcoin still leads the market and is outperforming other cryptocurrencies. Additionally, other narratives, such as meme coins, have fundamentally fragmented the liquidity that could go to powerful altcoins.
“This is a cycle driven by the Bitcoin narrative… Certain narratives have performed quite well (with the major coins lagging behind). Memes, AI and RWA were the clear leaders this cycle,” says Deutscher.
Read more: 11 cryptocurrencies to add to your portfolio before altcoin season
Conversely, CryptoQuant CEO Ki Young-joo sees the possibility of leading the start of the altcoin season to altcoins, noting Ethereum's improved market value-to-realized value (MVRV) ratio compared to Bitcoin.
“Given the current ETF landscape, this could be Ethereum’s own season. Historically, when Ethereum surges, other altcoins tend to follow,” Joo explained .
Binance Disables Copy Trading in European Union
On the regulatory front , Binance has shut down its copy trading services in Europe as new Markets for Crypto Assets (MiCA) regulations come into effect. The regulations, which are designed to provide uniform cryptocurrency regulation across the European Union, have prompted Binance to give users until the end of June 2024 to liquidate copy trading positions.
MiCA regulations aim to strengthen market integrity and investor protection.
Read more: What is Marketplace for Crypto Assets (MiCA) ?
BlackRock and Franklin Templeton lead RWA surge
The tokenized U.S. Treasury market has exploded, driven by high interest rates and the appeal of safe, high-yielding on-chain assets. BlackRock and Franklin Templeton are leading this surge and operate the largest tokenized funds.
In fact, tokenized U.S. Treasury products have surged more than 1,000% since early 2023. As of June 26, its market capitalization was $1.63 billion. This growth shows that combining traditional financial assets and blockchain technology holds promise for improved liquidity and streamlined trading.
Read more: What are the implications of real asset (RWA) tokenization?
Van Eck applies for the first Solana ETF in the U.S.
This week saw an important development as VanEck filed for the first Solana ETF . This filing could pave the way for institutional investors to gain easier exposure to Solana.
Approval of the ETF would significantly advance Solana's market position, potentially expanding its investor base and influence. Cryptocurrency market maker GSR predicted that the ETF could boost Solana's price by up to 9x . GSR thinks the Solana ETF could be next, but says Cardano (ADA ) or Ripple (XRP) ETF approval may not come anytime soon.
“The spot ETF allows us to adjust our relative liquidity estimates based on different scenarios for Solana’s relative size compared to Bitcoin’s 2.3x increase. This could increase Solana by 1.4x in the bearish flow scenario, 3.4x in the baseline scenario, and 8.9x in the lightning scenario,” predicted GSR analysts.
Read More: Solana (SOL) Price Prediction 2024/2025/2030
Top 10 cryptocurrencies this week
Despite the overall market downturn this week, with total market capitalization dropping from $2.35 trillion to $2.28 trillion, Solana stood out with a notable gain of 10.47%. On the other hand, Bitcoin and Ethereum showed a downward trend. Meanwhile, Toncoin rose in ranking, surpassing Dogecoin to become the 8th largest cryptocurrency by market capitalization.
From regulatory changes and market changes to potential new ETFs, these events play a significant role in shaping the cryptocurrency ecosystem. These events reflect broader economic trends and technological developments, and generate keen interest from various stakeholders within the financial ecosystem.
