Will This 1 New Catalyst for Solana Be a Game Changer?

Solana (CRYPTO: SOL) is already one of the most dynamic blockchains in crypto right now, and it just got exposed to yet another catalyst that could start to boost its price as soon as later this month. Given that during the past 12 months its price is up by out 70%, investors are doubtlessly excited to know how high it could go, and whether this new potential catalyst is going to increase their returns even more.

But before rushing to buy more of this coin, it's important to know if the development in question is actually going to be a game changer, or whether it's just another positive drop in an ocean that's given investors many reasons to buy already. So let's explore what could happen and how significant this potential event could be.

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This supports the idea that the coin is a serious financial asset

Per a new filing on Jan. 30, Coinbase Global wants to provide trading for Solana futures contracts, which it hopes to launch by Feb. 18. If the U.S. Commodity Futures Trading Commission (CFTC) approves, the new security will be offered as a financial derivative on Coinbase's platform. Given that the new presidential administration has been fairly pro-cryptocurrency so far, it seem probable that the application will be granted, and that the futures will start trading in the near term.

The plan is for investors to be able to purchase two different sizes of the contract, one that covers 100 SOL per unit, and one that covers five SOL per unit. At Solana's current price of about $195 per SOL coin, it is thus most likely that individual investors will be trading the smaller version -- if they decide to take on the substantial risks of trading futures at all. Not all investors will automatically get access to the futures trading program on the company's platform; they will likely need to apply for the privilege.

If the futures trading is approved, it will likely increase the amount of volume traded on the Solana chain, and it might stimulate some demand for the coin, as Coinbase will need to hold some additional SOL to underpin the contracts. But will the trading of futures contracts be a meaningful boon for Solana's price and contribute to its core investment thesis?

It isn't very clear, but the available evidence points to futures trading not being a very major catalyst, despite what some investors are hoping. After all, there have been other ways of betting on the future price of Solana for a good while already, via decentralized exchanges. The price hasn't gone to the moon in the meantime, nor has it struggled. So there probably aren't any game-changing factors in play.

There's still a strong thesis here

Regardless of how strong the catalyst from the potential approval of futures trading is, there are still many reasons to invest in Solana and hold it for the long term.

It's the blockchain developers are flocking to to deploy their artificial intelligence (AI) agent infrastructure projects, and it already has a rich ecosystem of meme coins, non-fungible tokens (NFTs), decentralized finance (DeFi) projects, and more, not to mention its very low fees and quicker transaction closing times than competitors like Ethereum. In the fourth quarter of 2024 alone, it had revenue of more than $840 million across the applications on its chain, up 213% from a year prior.

Put differently, Solana probably does not even need another catalyst from futures trading for the coin to continue to increase in value because real users and their clients are buying the coin for its utility value, supporting higher prices. As long as the network offers the features that draw users from other blockchains, the price of the token will increase. And keep in mind, the chain is still attracting people while being home to a lot of unsavory activity that can cause investors to lose their money if they aren't careful.

So don't put too much weight on the possibility of futures trading, and, please, don't take on the excessive risks of trading those futures yourself unless you're a professional investor. Buying and holding Solana itself is by far the safer move, and for most people, it will be the much more profitable long-term strategy.

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Alex Carchidi has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Coinbase Global, Ethereum, and Solana. The Motley Fool has a disclosure policy.