SOL outperforms BTC, igniting the Altcoin summer frenzy.

While the crypto market in general is being affected by instability and sideways trading in the past 24 hours, Solana has unexpectedly surged, recording an increase of more than 5%.

This price surge appears to be driven by increasing rumors about the potential launch of a Solana ETF. Specifically, sources indicate that the U.S. Securities and Exchange Commission (SEC) has requested Solana ETF issuers to update their S-1 filings within the next 30 days. This has raised expectations that Solana could become the first major altcoin to be included in ETFs similar to Ethereum before.

! 1 Day SOL Price Chart | Source: TradingViewAnalysts expect that with the SEC starting to review Solana ETF proposals, SOL will have a chance to become the next coin after Ethereum to be included in these investment funds. This information has stimulated interest in Solana again, especially as some analysts such as Eric Balchunas, senior ETF analyst at Bloomberg, have shared about the possibility that "a potential altcoin ETF could emerge in the summer, and Solana is likely to take the lead."

The increasing expectations for the Solana ETF have driven demand for this coin, not only increasing its value but also making SOL the focal point of a new wave of altcoin investment.

SOL outperforms BTC, igniting the Altcoin summer fever

One of the important indicators reflecting the strength of Solana in the current market is the SOL/BTC trading pair. Since June 7, the value of the SOL/BTC pair has increased significantly by 7%, indicating that Solana is performing better than Bitcoin. At this moment, each Solana is valued at approximately 0.0015 BTC, reflecting the increased interest from investors.

This not only shows that SOL is dominating the race against major currencies like Bitcoin, but also indicates a shift in the mindset of investors as they gradually turn away from large-cap assets to seek opportunities in potential altcoins like Solana.

! SOL/ BTC Chart | Source: TradingViewData from Glassnode shows that Solana's (NUPL) "Unrealized Profit/Loss" indicator has entered the "Hope" zone. This is an indication that investor sentiment has shifted to a positive phase, where the majority of Solana hodlers are recording modest gains, and confidence in long-term growth is starting to form.

In particular, when Solana's NUPL moves into the "Hope" zone, it also indicates that investors have a more optimistic view regarding the recovery and the potential for SOL's price to continue rising in the near future. Along with the momentum from the potential launch of an ETF, this increases the likelihood that SOL will become one of the standout altcoins this summer.

Unrealized net gains/losses of SOL | Source: Glassnode## Has the Altcoin season arrived?

As ETF negotiations heat up and Solana is rising strongly, the question arises: is this strength enough to spark a widespread altcoin boom?

Currently, the Altcoin Season Index shows that the cryptocurrency market is still in the "Bitcoin season," making the prospect of an altcoin summer seem bleak. By definition, a true altcoin season occurs when at least 75% of the top 50 altcoins outperform Bitcoin over a three-month period. However, currently only 20% of these altcoins have achieved that in the past 90 days.

Altcoin Season Index | Source: Blockchain CenterThe inefficiency of altcoins suggests that an altcoin season boom may still be a distant prospect. Nevertheless, with the positive movement of Solana and supportive factors from ETF rumors, the market may see notable shifts in the near future.

Taylor