Why Solana Is Sinking Today

Source The Motley Fool

Solana (CRYPTO: SOL) was losing ground in Thursday trading, having dropped by 3.2% over the previous 24 hours as of 12:15 p.m. ET. Over the same period, Bitcoin was up 0.5% and Ethereum was down 1.5%.

Solana's fall came after the Chicago Mercantile Exchange (CME) said that it does not have a plan to begin offering futures for the token as an investment vehicle. The CME currently offers options trading for Bitcoin and Ethereum, and some investors have been hoping that options trading for Solana could help send its token price higher.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Solana slips following "leak" clarification

Solana's price had recently seen some bullish momentum in conjunction with a beta page that was briefly available on CME's website that suggested options trading for both Solana and XRP could begin on Feb. 10. That page was regarded as a leak by some investors in the crypto space.

However, the financial services company has come out and said that the beta page being accessible was an error, and that no decision about offering futures options for Solana and XRP has been made. According to a CME spokesperson, the page was simply a mock-up from a test section full of similar mock-ups, and that these test pages aren't indications that any plans have been made for the offerings they refer to.

What's next for Solana?

While CME says that it's made no official determinations about whether it will offer futures trading for Solana and XRP, it's still possible that it will roll out options for these cryptocurrencies. Notably, Solana and XRP have been named as possible candidates for inclusion in a U.S. cryptocurrency reserve project promoted by President Trump.

According to reports, Trump and his crypto team want to structure the proposed crypto reserve around tokens that originated in the U.S. If Solana were to be added to such a state-backed crypto reserve system, it could create substantial bullish pricing catalysts for the token. It could also encourage CME and other financial services firms to offer options trading for it.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $381,355!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,390!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $514,479!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of January 21, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP. The Motley Fool recommends CME Group. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
$180 Oil Prices Imminent? Saudi Arabia Warns: Crisis to Last Until Late April, Oil Prices Will Break Historic HighsThe continuous escalation of geopolitical conflicts in the Middle East is pushing global energy markets toward their most severe test in nearly 20 years.The Wall Street Journal reports th
Author  TradingKey
Mar 20, Fri
The continuous escalation of geopolitical conflicts in the Middle East is pushing global energy markets toward their most severe test in nearly 20 years.The Wall Street Journal reports th
placeholder
Gold tumbles below $4,650 as inflation fears and liquidity squeeze weighGold price (XAU/USD) remains under selling pressure near $4,640 during the early Asian session on Friday. The precious metal extends the decline as soaring crude oil and energy prices, driven by the escalating US-Israeli war with Iran, reignite inflation fears.
Author  FXStreet
Mar 20, Fri
Gold price (XAU/USD) remains under selling pressure near $4,640 during the early Asian session on Friday. The precious metal extends the decline as soaring crude oil and energy prices, driven by the escalating US-Israeli war with Iran, reignite inflation fears.
placeholder
Bitcoin Drops Below $70,000 as Crypto Rally Fails to MaterializeThe crypto market experienced a significant pullback, Bitcoin (BTCUSD) fell below the key $70,000 mark during intraday trading, triggering short-term stop-loss orders and causing market s
Author  TradingKey
Mar 19, Thu
The crypto market experienced a significant pullback, Bitcoin (BTCUSD) fell below the key $70,000 mark during intraday trading, triggering short-term stop-loss orders and causing market s
placeholder
Gold falls below $4,850 as Fed holds rates steadyGold price (XAU/USD) faces some selling pressure near $4,830 during the early Asian session on Thursday.
Author  FXStreet
Mar 19, Thu
Gold price (XAU/USD) faces some selling pressure near $4,830 during the early Asian session on Thursday.
placeholder
WTI Crude Prices Capped at $100, Has the Rally Ended? How to Trade the Short Term? Today (March 18), WTI crude oil continued to exhibit significant short-term volatility, driven by a tug-of-war between headlines and data. Intraday, prices retreated from Tuesday's high o
Author  TradingKey
Mar 18, Wed
Today (March 18), WTI crude oil continued to exhibit significant short-term volatility, driven by a tug-of-war between headlines and data. Intraday, prices retreated from Tuesday's high o
goTop
quote