In a significant development for Solana (SOL), the market’s fifth-largest cryptocurrency, asset manager VanEck has unveiled a major upgrade to its Solana exchange-traded note (ETN). This upgrade introduces an automated staking feature, which is contributing to the ongoing recovery in SOL’s price.
New Staking Rules for VanEck’s Solana ETN
Matthew Sigel, the head of digital asset research at VanEck, announced that the Solana ETN, trading under the ticker VSOL with $73 million in assets under management, will now have rewards that are accrued and reinvested daily. This innovative staking system aims to attract more investors and infuse new capital into the investment vehicle.
According to VanEck’s press release, the staking process for the Solana ETN is designed to be non-custodial. This means that the custodian of the ETN’s assets maintains full control of the staked SOL, thus mitigating the lending risks typically associated with cryptocurrency investments.
Effortless Rewards for Investors
Investors in the Solana ETN are not required to take any action to receive staking rewards. These rewards are integrated into the coin entitlement of the ETN, ensuring fair distribution regardless of the investment timing, minus a 25% staking fee. The rewards are incorporated into the daily end-of-day net asset value (NAV), with a cutoff time at 4 PM CET. This setup allows investors to reap the benefits of staking without the usual complexities involved in managing crypto assets directly.
The firm has also directed its custodian to delegate SOL to a validator node owned and maintained by a staking provider. Importantly, control of the delegated SOL remains with the custodian, ensuring enhanced security and stability. Once the SOL is delegated, the validator node earns various rewards, including inflationary and block rewards, which are accrued continuously and reinvested into the ETN every day, boosting its overall performance.
SOL Price Prediction
Solana, as the fifth-largest cryptocurrency, has demonstrated significant price action recently, appreciating approximately 10% and currently trading at $164.50. This marks a robust recovery from a notable drop to around $109 on August 5, signaling a strong rebound amidst a generally positive market sentiment.
Technical Insights and Market Predictions
Market expert Carl Runefelt recently emphasized Solana’s potential for further gains in a social media post, expressing that the token could “go parabolic starting today.” Runefelt identified a significant technical pattern on the SOL/USDT daily chart, specifically a breakout from the “Cup and Handle” formation. This bullish pattern often indicates strong upward momentum, with Runefelt projecting a potential price target of $370.
Achieving this target would mean Solana surpassing its all-time high of $259, set in November 2021. This optimistic outlook aligns with other analysts’ broader positive predictions for the cryptocurrency market, particularly Bitcoin, which is also anticipated to reach new highs in the coming months.
