As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous transformations and trends that have shaped our industry. The recent announcement by VanEck regarding its Solana ETN is a testament to the ever-evolving landscape of digital assets.
In light of optimistic market forecasts for the fifth largest cryptocurrency, Solana (SOL), investment firm VanEck has made a notable enhancement to its Solana exchange-traded note (ETN). This upgrade includes an automated staking function, aiding in SOL’s ongoing price rebound.
New Staking Rules For VanEck’s Solana ETN
Matthew Sigel, the leader of digital asset research at VanEck, announced that the Solana Exchange-Traded Note (ETN), identified by the ticker VSOL and currently managing $73 million in assets, will now distribute and reinvest rewards on a daily basis under the updated staking guidelines. This change is intended to entice additional investors and secure new capital.
Instead, let me rephrase it in a simpler and more conversational manner: VanEck’s statement explains how you can stake Solana tokens with their ETN (Exchange-Traded Note). Notably, the staking system is set up so that the entity managing the ETN’s assets maintains complete control over the staked Solana coins. This setup eliminates the usual risks linked to lending that are common in crypto investments.
Furthermore, those who invest in the Solana Exchange-Traded Note (ETN) won’t need to perform any actions to claim their staking rewards. Instead, these rewards are automatically incorporated into the ETN’s coin allocation, ensuring fair distribution irrespective of when the investment was made. However, a 25% fee for staking will be deducted from these rewards.
As an analyst, I’d explain it like this: Daily staking rewards will be calculated based on the 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 dealing with the intricacies often associated with managing cryptocurrencies directly.
The company additionally directs its custodian to transfer SOL to a validator node operated by a staking service. Notably, the custodian retains control over the delegated SOL, thereby maintaining security and stability.
After a SOL (Solana) is assigned for validation, the validator node accrues several types of earnings, such as inflationary and block rewards. These rewards are added to the node’s earnings on a continuous basis. Every day, these earnings are put back into ETN (Ethereum Network), enhancing its overall growth and performance.
SOL Price Prediction
Over the last month, the fifth-largest digital currency has displayed notable price fluctuations, increasing about 10% and now trading at $164.50. This upturn comes after a substantial decline to roughly $109 on August 5, indicating a robust recovery during a period of optimistic market trends.
In his latest social media update on Monday, market analyst Carl Runefelt pointed out the possibility of significant increases in Solana’s value. He predicted that the token might experience exponential growth, potentially starting from today.
Runefelt noted a notable technical structure on the SOL/USDT daily graph, which appears to be a “Cup and Handle” configuration breaking out. Typically, this bullish formation suggests robust uptrend, with Runefelt estimating a possible future price level of around $370.
Reaching this goal would signify Solana exceeding its peak price of $259, a level it reached in November 2021. This optimistic viewpoint corresponds well with other analysts’ overall bullish forecasts for the cryptocurrency market, especially Bitcoin, which is also anticipated to reach new heights in the upcoming months.
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2024-10-22 11:10