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1 of the best cryptocurrencies to buy in June before its value skyrockets
As consumer adoption increases, Solana could be poised for a big hit this summer.
During the first five months of 2024, Solana (SOL -5.87%) has more than kept pace with both Bitcoin (CRYPTO: BTC) e Ethereum (CRYPTO: ETH). It is up 66%, compared to 65% for Ethereum and 62% for Bitcoin.
That’s impressive, but the best may be yet to come. There are three key catalysts that could send Solana on the rise this summer.
1. A Solana spot ETF?
The main reason Solana’s value could skyrocket involves spot exchange-traded funds (ETFs). We have already seen Bitcoin get a huge boost from new launches Spot ETFs in January. And now we’re seeing Ethereum get a huge boost from the excitement over the pending launch of new Ethereum spot ETFs. So any guesses on which cryptocurrency might be next to get a spot ETF?
Rumor has it that it will be Solana. And it’s not just cryptocurrency enthusiasts on social media who think Solana could be next. CNBC spokespeople also addressed the topic.
The current consensus is that Wall Street will stick to the script of choosing a large-cap, widely held cryptocurrency for the next cryptocurrency ETF. And Solana, which ranks as the fifth largest cryptocurrency with a massive market capitalization of $77 billion, fits the bill.
2. Coin meme-mania
The next big factor is meme coin craze. There has been an absolute explosion of interest in meme coins, as some investors have turned just a few hundred dollars into $1 million or more.
Solana has emerged as the blockchain of choice for buying and selling new meme coins. As a result, activity on the Solana blockchain is reaching new heights. People are moving in and out of meme coins and this is attracting new users and new attention from the crypto community.
Image source: Getty Images.
What’s more interesting is that this meme coin craze is starting to have real-world implications. For example, in late 2023, Solana was having trouble selling his new “cryptophone.” But then she came up with the idea of giving away free meme coins with the purchase of every phone, and these phones are now flying off the shelves. Quite simply, people realized that meme coins could be worth more than the phone itself. It remains to be seen whether people use the phone.
Or consider the world of mobile apps. You’ve probably downloaded a fair share of mobile apps on your phone, right? Well, next time you do, check out the list of best mobile app downloads. The Phantom wallet app for Solana is now getting more downloads than Facebook’s mobile app and ranks just below ChatGPT. People want the Phantom app because it gives them access to Solana meme coins.
3. A new PayPal partnership
Even if you’re not interested in meme coins, Solana’s new partnership with PayPal holdings (PYPL 0.42%) might catch your attention.
At the end of May, PayPal announced its news stable currency, PayPal USD, would be launched on the Solana blockchain. In its press release, PayPal cited Solana’s “extremely low costs” and “fast speeds.”
This is important because cryptocurrency users, just like everyone else, tend to go where the costs are lowest and the speeds are fastest. And Solana is clearly faster and cheaper to use than Ethereum, where PayPal originally launched its stablecoin in August.
But uptake back then wasn’t great, and PayPal is clearly hoping that Solana can help bring the stablecoin to a wider audience. From Solana’s perspective, the partnership with PayPal could unlock new commerce and payment opportunities, including peer-to-peer payments.
Solana or Ethereum?
June could be a crucial month for Solana. The big moment of truth will come when new Ethereum spot ETFs start trading. This could happen in June.
Some have said this will be detrimental to any rival cryptocurrency – and this includes Solana – as people choose cryptocurrencies traded via ETFs.
But this way of thinking is a bit short-sighted. For one thing, Solana could also get ETFs. Additionally, Solana truly appears to have turned the corner when it comes to mainstream consumer adoption.
In May, celebrities with millions of followers (like Caitlyn Jenner and Iggy Azalea) began using Solana to launch their meme coins. If this trend continues, it could help it with name recognition and popular adoption.
And don’t forget: Solana’s value skyrocketed nearly 900% last year. It has demonstrated its ability to do so and there may be further benefits in the future.
So yes, I am convinced that Solana could be poised to rise significantly this summer. He just needs to continue to undermine Ethereum’s dominance and win over a much larger audience of users and investors.
Domenico Basulto has positions in Bitcoin, Ethereum and Solana. The Motley Fool has positions and recommends Bitcoin, Ethereum, PayPal and Solana. The Motley Fool recommends the following options: Short June 2024 $67.50 PayPal Calls. The Motley Fool has a disclosure policy.