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Amid a bullish outlook for the fifth-largest cryptocurrency on the market, Solana (SOL), asset management firm VanEck has announced a major upgrade to its Solana exchange-traded note (ETN), which now offers an auto-signing feature, contributing to the ongoing SOL price rebound.
New staking rules for VanEck’s Solana ETN
Matthew Siegel, Head of Digital Assets Research at VanEck, open The Solana ETN, which trades under the ticker VSOL and currently has $73 million in assets under management, will have rewards accumulated and reinvested daily under the new staking rules, with the ultimate goal of attracting more investors and new capital.
On the other hand, Van Eyck press release Explain how the staking process for Solana ETN works. Importantly, staking methods are designed to be non-custodial, meaning that the custodian of the ETN assets retains full control over the staked SOL, thus eliminating the lending risks typically associated with cryptocurrency investments.
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Additionally, Solana ETN investors will not need to take any action to receive staking rewards. These rewards will be counted towards currency accrual ETNensuring a fair distribution no matter when the investment was made, minus the 25% mortgage fee.
Collection bonuses will be reflected in the daily Net Asset Value (NAV) at the end of the day, with a cutoff point at 4pm CET, allowing investors to benefit from Staking Without the “complexity” usually involved in managing crypto assets directly.
The company also instructs its custodian to delegate SOL to a verification node owned and operated by the staking provider. Most importantly, control of the delegated SOL remains with the trustee, ensuring security and stability.
Once SOL is delegated, the validator node earns various rewards, including inflationary rewards and bounties Block rewardsaccumulated continuously. These rewards will be reinvested into ETN daily, contributing to its overall performance.
SOL price forecast
The fifth-largest cryptocurrency has shown significant price action over the past month, rising nearly 10% and currently trading at $164.50. This rebound comes after a significant decline to around $109 on August 5, indicating a strong recovery amid overall bullish market sentiment.
Market expert Karl Roonevelt recently highlighted the potential for Solana to post further gains on Monday Social media sharingstating that the token could “go parabolic starting today.”
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Runefelt noted an important technical pattern on the daily SOL/USDT chart, identifying a breakout from a “cup and handle” formation. this Bullish pattern It often indicates strong upward momentum, with Runefelt predicting a potential price target of $370.
Achieving this target means Solana surpasses its all-time high of $259, which was set in November 2021. This bullish outlook is consistent with broader analyst expectations. Bullish outlook As for the cryptocurrency market, especially Bitcoin, which is also expected to reach new highs in the coming months.
Featured image of DALL-E, chart from TradingView.com