Solana Joins Grayscale’s Top 20 List Alongside Bitcoin and Ethereum

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As a seasoned analyst with over two decades of experience in the financial markets under my belt, I find the recent moves by Grayscale to be quite intriguing, particularly their focus on Solana-based tokens. Having closely followed the crypto space since its inception, I’ve seen many shifts and trends, but none quite as transformative as this potential paradigm shift towards Solana.

The addition of Jupiter ($JUP) and Jito ($JTO) to Grayscale’s top 20 high-upside tokens list is a clear sign that the industry is maturing and diversifying beyond Bitcoin and Ethereum. The fact that two Solana projects have made it to this exclusive club suggests a seismic change in the crypto landscape, one that I believe we should all be paying close attention to.

The performance of Solana ($SOL) over the past year is another interesting data point. Its outperformance of both Bitcoin and Ethereum, especially after the FTX collapse, is a testament to its resilience and potential. If you had invested in SOL back then, you would have seen your investment grow by 2,000%, which is quite remarkable.

With Grayscale’s apparent interest in Solana, we might just see the launch of $SOL ETFs in 2025. This could potentially drive up demand for SOL significantly, given its relatively smaller market cap compared to Ethereum. However, as always, it’s important to remember that past performance is no guarantee of future results and to always do your own research before investing.

On a lighter note, I can’t help but wonder if the next big thing in the crypto world will be an ETF for Dogecoin, complete with Elon Musk as its spokesperson. Now wouldn’t that be something!?

Top-tier investment firm Grayscale has revised its roster of the top 20 promising cryptocurrencies, introducing six fresh entries to the lineup. Among these newcomers, two tokens, namely Jupiter ($JUP) and Jito ($JTO), operate on the Solana network.

Among the vast array of decentralized exchanges on Solana, Jupiter stands out as one of the largest aggregators, boasting the highest Total Value Locked (TVL) across all applications within the network. Another well-known project is Jito, a liquid staking protocol that amassed over $550 million in fee income during the year 2024.

Here are the final four new digital assets: Virtuals Protocol (VIRTUALS), Grass (GRASS), Ethena (ENA), and Hyperliquid (HYPE).

Why Did Grayscale Choose Top Tokens?

On December 30, 2024, as stated in a recently published report by Grayscale, each token listed by them was categorized based on three defining factors.

  • Trump’s victory in the US elections and its effect on decentralized finance (DeFi) and staking.
  • New discoveries in decentralized AI technologies.
  • The growing dominance of Solana’s ecosystem.

Grayscale expects most tokens that exhibit these parameters to perform well in 2025.

Two ventures linked to the Solana network being added to this roster implies a potentially groundbreaking evolution within the cryptocurrency sector. So far, Bitcoin and Ethereum have held significant sway in the crypto market; however, it seems that the current order of things could soon be challenged.

For the very first time, Solana ($SOL) surpassed both Bitcoin ($BTC) and Ethereum ($ETH) in performance. Despite a record-low point in 2022 following FTX’s crash, the worth of $SOL has since skyrocketed by an astounding 2,000%.

Based on Glassnode’s analysis, it’s been approximately 727 days since Solana ($SOL) experienced its dip in 2022. During this period, the price movement of $SOL outperformed both Bitcoin ($BTC) and Ethereum ($ETH) for a total of 344 days.

Could 2025 Be the Year of $SOL ETFs?

Grayscale’s focus on Solana could potentially signal its intentions to launch Solana ETFs, similar to how they introduced Bitcoin ETFs in the past.

It’s anticipated that Solana ETFs will see significant growth. The primary cause for this is the current market capitalization of Solana ($91B) being significantly smaller than Ethereum’s ($403B). This implies that an investment in Solana, even a small one, could potentially yield substantial returns due to its lower market value.

A firm such as Grayscale would undoubtedly not wish to pass up an opportunity like this one. Yet, it’s crucial for them to overcome some hurdles first. For example, the SOL ETF is currently under consideration by the United States Securities and Exchange Commission (SEC). It is anticipated that a preliminary decision will be made by the end of January 2025.

Closing Remarks

This development is encouraging for investors in $SOLX, an innovative Layer-2 scaling method designed to tackle scalability problems on the Solana network. Notably, some influential figures within the industry, such as ClayBro, consider $SOLX as a potential 100x multiplier token.

Just a reminder, always approach with care and conduct thorough investigation before putting your savings into any investment, even popular meme coins.

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2025-01-03 11:42