After a dull week characterized by Bitcoin, Ethereum and Solana prices falling or fluctuating, prices jumped sharply at the end of last week.
It is worth noting that Ethereum’s losses were halted as prices recovered, rising from around $3,000. At the same time, Bitcoin and Solana surged, closing at $70,000 and $200, respectively.
Interest in Bitcoin, Ethereum and Solana spikes
According to Santíment datadespite the weakness across the board, there were signs of strength towards the end of last week. Of note was the renewed interest, where Solana, Bitcoin, and Ethereum all saw a sharp increase in trading volume.
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When trading volume increases, it often suggests that market participants are curious and willing to participate, especially if prices are rising. As these major currencies were holding steady, rejecting losses, especially since Friday, July 26, buyers were in the equation, looking to capitalize.
As analysts at Santiment noted, the performance of Bitcoin, Ethereum, and Solana tends to impact the overall market. If Ethereum recovers, for example, it would benefit the broader layer 2 and layer 3 ecosystems. This would further boost meme coins and even decentralized finance (DeFi) activity.
There were several factors behind this interest. In the case of Bitcoin, the changing regulatory outlook on the world’s most valuable currency and increased endorsement from politicians, especially in the United States, could explain why more people are willing to learn about the currency.
The Impact of Trump, Spot Ethereum ETFs and SOL Flipping BNB
Over the weekend, Donald Trump, the former president and presidential candidate in the upcoming November election, gave a speech at the recently concluded Bitcoin conference in Nashville. Trump expressed his support for Bitcoin, saying that he would make America the home of crypto.
Meanwhile, eyes were on Ethereum following the approval of ETFs in sight by the US Securities and Exchange Commission (SEC). Although the derivative product has begun trading on major exchanges, including the NYSE and Cboe, inflows remain low.
In fact, Farside data showed that on Friday, spot Ethereum ETFs saw outflows for three consecutive days. Outflows from Grayscale’s ETHE primarily drove this. Even amid this unexpected development, BlackRock’s spot Ethereum ETF product saw inflows of over $87 million on July 26.
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Traders also tracked Solana after the coin overtook BNB as the third most valuable cryptocurrency excluding stablecoins. As of July 29, SOL commanded a market cap of $88.5 billion, while BNB was at $86.5 billion, according to CoinMarketCap. data.
Over the past few weeks, SOL has been on a tear. To put it in numbers, SOL is up 56% from its July lows. It will likely make new highs in Q3 2024 if buyers push past $200.
Featured image by DALLE, chart by TradingView