Solana DATs Expected to Drive Price Movement More Efficiently Than Ethereum
Bonk core contributor Nom argues that Digital Asset Treasury (DAT) vehicles focusing on Solana (SOL) could drive price movements more significantly than those for Bitcoin (BTC) or Ethereum (ETH). Key points include:
- Solana's smaller market cap and heavy staking limit available supply.
- Recent announcements indicate $2.5 billion in SOL DATs, comparable to larger capital raises for ETH and BTC.
- Nom estimates around 5 million SOL tokens remain locked from FTX’s bankruptcy estate, equating to about $1 billion, with potential future unlocks adding to supply pressure.
- Daily sell pressure from inflation and unlocks necessitates substantial demand to maintain price levels.
- SOL DATs can acquire tokens at discounts, improving the efficiency of inflows compared to open market purchases.
- Approximately 63% of SOL is currently staked, limiting immediate availability and impacting price dynamics.
- Valuation differences mean a dollar spent on SOL has a higher market impact compared to ETH or BTC.
New institutional interest includes:
- Galaxy Digital, Multicoin Capital, and Jump Crypto planning to raise $1 billion for a publicly traded Solana treasury.
- Pantera Capital considering raising up to $1.25 billion for a dedicated SOL treasury vehicle.
- Sharps Technology aiming for a $400 million private placement to create the largest corporate Solana treasury.
Current trading price for SOL is $204.
