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Solana’s treasury demand could provide Solana with a significant advantage over XRP in the short term. This is because institutional treasuries have accumulated 4.3 million SOL, which is equivalent to approximately $905 million. This increases both on-chain support and Solana’s transaction volume ahead of Spot ETF approvals. Although XRP has shown a much stronger institutional futures trading trend during this process, the lower number of treasury buyers puts it a step behind Solana.
The demand for Solana treasuries is further fueling the debate between Solana and XRP. In July, SOL trading volume from treasuries was around $4 billion. For XRP, this figure was around $460 million. Furthermore, if SOL purchases continue after the Spot ETF, it will again outperform XRP. However, XRP continues to maintain its CME futures interest.
Factors Affecting Solana and XRP Dynamics
The high accumulation of institutional treasuries in Solana and the interest of fewer publicly traded companies compared to XRP have a significant impact on Sol and XRP dynamics. Institutional treasuries have significantly increased their SOL positions from May to the present. This has contributed to the increase in trading volume and on-chain demand ahead of the Spot ETF approval. Institutional treasuries currently hold approximately 4.3 million SOL.
Why Has SOL Trading Volume Increased Against XRP?
The difference in trading volume between SOL and XRP reflects active purchases by companies such as Sol Strategies, Upexi, Sharps Technologies, and DeFi Development. During this period, Sharps Technologies made a significant announcement. According to the announcement, in addition to raising $400 million in capital, SOL purchases could reach up to $1 billion. This is seen as a significant demand signal for SOL at the treasury level.
Can SOL Leave XRP Behind?
If spot ETF approvals happen and institutional treasuries keep buying SOL, SOL could leave XRP behind. Experts say this could happen within weeks. Besides the XRP/SOL ratio, short-term price movements show that Solana has recently outperformed XRP by about 27%.
Are There SOL Treasury-Related Risks?
Risk is always present in the crypto sector. In such situations, it is essential to consider the most fundamental risks. Among these, whales’ profit realization comes first. In addition, it is important to consider regulatory developments. XRP’s strong futures trading activity is one of its notable features. Furthermore, legal proceedings can positively impact demand independently of the treasury. This situation can also have a negative impact. In this regard, market participants should always evaluate their derivative positions in conjunction with treasury holdings.
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