- The GENIUS Crypto Act’s passage led to price increases for several cryptocurrencies, including Solana (SOL).
- SOL is currently trading at $175 after a recent attempt to break the $200 resistance level and a correction to $170.
- Analysts from Fundstrat suggest the GENIUS Act could drive more stablecoin activity, possibly boosting altcoins like Solana.
- Experts highlight that Ethereum‘s strong performance could positively impact other Layer-1 cryptocurrencies, including SOL.
- Bitcoin is entering a consolidation phase, and further declines may affect SOL and the broader cryptocurrency market.
The recent approval of the GENIUS Crypto Act has triggered gains in the cryptocurrency market, increasing prices for assets such as Solana (SOL). After the bill’s passage, SOL attempted to breach the $200 resistance mark but is now trading at $175 following a correction to around $170.
Earlier this week, SOL briefly touched $203 before retreating. Fundstrat analyst Sean Farrell stated that the GENIUS Act, which supports the role of stablecoins in the financial system, could increase stablecoin-related activity in the second half of the year. Greater stablecoin activity may benefit Ethereum and other altcoins, including Solana.
According to Farrell, “One of the most bullish things for Solana, I think, is ETH rerating higher. Intuitively, all of these [Layer-1s] re-price off of ETH, and so, if ETH continues to show outperformance, I think, you should expect SOL to show some beta to that over longer time horizons and provide a pretty compelling risk award.” He also noted the expected launch of SOL ETFs this year, adding, “I do think we’re probably going to get staking with them.” Farrell maintained a price target for SOL at $450, set earlier this year.
Since the collapse of FTX in 2022, when SOL dropped below $10, the asset has shown notable recovery and resilience. Its price has increased by about 2,000% since late 2022, reaching several new highs.
Market trends remain volatile. Bitcoin (BTC) is currently consolidating and recently dipped to $116,000, marking a decrease of 1% on the day and 1.6% for the week. Any further correction in BTC could trigger broader declines across the crypto market, including for Solana (SOL).
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