KEY POINTS
- Canary is betting on the Solana network's 'robust DeFi ecosystem' in its latest move
- The crypto asset manager recently filed S-1 documents for XRP and Litecoin
- Some industry experts believe the Solana blockchain's recent figures signal a potential 'power shift' in the industry
Cryptocurrency asset manager Canary Capital is diving deeper into the exchange-traded fund (ETF) segment as the company filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for a spot Solana (SOL) ETF.
The filing was submitted Wednesday, just around two weeks after Canary filed for a spot Litecoin (LTC) ETF, driving the digital currency's price higher.
Canary Bets on Solana's Thriving Ecosystem
Canary, which has been gaining much attention in the crypto space in recent weeks due to the bold filings it made for the XRP and Litecoin tokens, said it believes in the Solana blockchain's "battle-tested" grit in a packed decentralized finance landscape.
"Solana's robust DeFi ecosystem has led to strong sustained on-chain analytics as measured by transactions per day, active addresses, new addresses, while maintaining a low fee environment for all consumers," Canary said in a statement.
Canary expects further development in the network's future momentum, driven by growth in native on-chain stablecoin deployment.
Solana's Recent Solid Performance
A day before filing for a Solana ETF, Canary highlighted the blockchain's growth in user activity in the past year, noting that the network has eclipsed Ethereum and the Binance Chain in terms of active addresses.
Canary said leadership within the highly competitive DeFi space can be gauged through user activity, and Solana has proven itself as a leader in the said aspect.
SOL's huge market value has ranked it fifth among all the thousands of cryptocurrencies in the world. It is just behind BNB, stablecoin giant Tether (USDT), ETH, and Bitcoin.
The digital coin's price market cap is only around $4 billion away from BNB, the Binance Chain's native cryptocurrency. While the asset's October chart hasn't been always in the green, the last two weeks have been relatively kind to the popular token.
Is Solana On the Verge of Triggering a 'Power Shift' in Crypto?
Canary's filing comes at a time when analysts are bullish for Solana's development amid recent indicators of its continuing growth.
Experts at 10X Research pointed to how Solana surpassed the Ethereum network in daily fees and it could suggest a "potential power shift in the crypto world." They noted how Ethereum has long been a "top dog" after Bitcoin, "but things may be changing" due to the recent figures Solana has been coughing up.
For 10X Research analysts, it is a huge deal for the network to have surpassed not just Ethereum's fee generation numbers, but also in earnings yield. One expert said Solana's recent performance can be likened to a boxer "punching above his weight class."
