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
Bitcoin shows strong correlation with institutional demand following 7% uptickBitcoin's price has largely tracked net institutional demand over the past year, according to Bitwise. Net institutional demand is the buying activity of global exchange-traded products (ETPs) and treasury companies minus new supply.
Author  FXStreet
Yesterday 01: 37
Bitcoin's price has largely tracked net institutional demand over the past year, according to Bitwise. Net institutional demand is the buying activity of global exchange-traded products (ETPs) and treasury companies minus new supply.
placeholder
Silver Price Forecast: XAG/USD corrects to near $86.50 as Iran stops killing protestersSilver price corrects almost 6% to near $86.50 during the Asian trading session on Thursday.
Author  FXStreet
22 hours ago
Silver price corrects almost 6% to near $86.50 during the Asian trading session on Thursday.
placeholder
Standard Chartered lifts Ethereum call to $7,500, arguing institutional demand could leave Bitcoin trailingStandard Chartered raised its year-end Ethereum target to $7,500 (from $4,000), citing institutional demand, while projecting $25,000 by 2028 and scenarios toward $40,000 by 2030 amid ETF- and treasury-driven accumulation.
Author  Mitrade
22 hours ago
Standard Chartered raised its year-end Ethereum target to $7,500 (from $4,000), citing institutional demand, while projecting $25,000 by 2028 and scenarios toward $40,000 by 2030 amid ETF- and treasury-driven accumulation.
placeholder
Bitcoin Hits $97K Despite Elevated PPI and Lack of US Tariff DecisionDespite higher-than-expected Producer Price Index (PPI) inflation data for November, Bitcoin surged to new eight-week highs, diverging from US stock markets.
Author  Mitrade
19 hours ago
Despite higher-than-expected Producer Price Index (PPI) inflation data for November, Bitcoin surged to new eight-week highs, diverging from US stock markets.
placeholder
Bitcoin Flashes Classic Bottom Signals as BTC Nears $101K ReclaimBitcoin nears two-month highs with key indicators signaling potential for further gains as it targets $101,000.
Author  Mitrade
1 hour ago
Bitcoin nears two-month highs with key indicators signaling potential for further gains as it targets $101,000.
goTop
quote