Welcome to This Week in Crypto, your go-to source for the latest happenings in the cryptocurrency world. In this edition, we dive into the exciting developments surrounding Solana, as VanEck files for the first Solana ETF in the U.S. We also explore the increase in Bitcoin ATM installations worldwide, nearing an all-time high. Additionally, we examine the significant drop in Bitcoin wallet activity, reaching its lowest levels since 2010. Stay tuned for these stories and more in this week’s roundup!
Solana’s Price Jumps Amid VanEck Spot ETF Filing
Investment management firm VanEck has filed an S-1 registration statement for the “VanEck Solana Trust,” aiming to launch the first spot Solana (SOL) ETF in the United States. This ETF is designed to reflect the price performance of Solana by backing the Trust’s shares directly with SOL tokens. The fund will not use any portion of the Trust’s SOL for staking rewards or income generation. This filing follows the recent approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC).
Amid this development, Solana’s price saw a notable increase. SOL, currently the fifth-largest cryptocurrency by market capitalization, surged by 6.6% within an hour and nearly 15% in the past week, now trading just below $150. VanEck’s head of digital asset research, Matthew Sigel, emphasized Solana’s competitive edge against Ethereum due to its high throughput, low fees, robust security, and strong community support.
Global Crypto ATM Installations Surge 17.8%, Nearing All-Time High
The number of cryptocurrency ATMs worldwide has surged by 17.8% over the past year, reaching 38,279, close to its all-time high of 39,541 set in December 2022. In 2024 alone, 2,564 new cryptocurrency ATMs have been installed, reflecting a positive trend after the net loss of 2,861 machines in 2023. Notably, the installation count increased each month from July 2023 to May 2024, with a slight dip in May but a strong rebound in June, adding a net of 377 machines.
The United States leads with over 82% of the world’s cryptocurrency ATMs, followed by Canada at 7.7%. Australia has experienced significant growth, with installations nearly 17-fold over the past two years, reaching 1,107 machines and positioning itself to potentially surpass Europe, which has 1,584 ATMs. Other countries with notable installations include Spain, Poland, El Salvador, Germany, and Hong Kong. Romania, Georgia, Switzerland, Austria, and New Zealand also have more than 100 ATMs each, indicating widespread global adoption.
Bitcoin Wallet Activity Hits 14-Year Low
Bitcoin wallet activity has fallen to its lowest level since November 2010, with the active address ratio in June dropping to a low of 1.22%, peaking at just 1.32%. According to on chain data from IntoTheBlock, the number of active Bitcoin wallets also hit a multiyear low, with only 614,770 active wallets recorded in the week of May 27, the lowest since December 2018. Juan Pellicer, a senior researcher at IntoTheBlock, attributed this decline to weaker retail participation compared to past cycles, noting that recent surges to new all-time highs were driven more by institutional capital.
Despite the recent launch of Runes, a fungible token protocol expected to boost Bitcoin miner revenues, transaction fees have returned to pre-halving levels, and miner reserves are at a 14-year low. Pellicer mentioned that activity on Runes has decreased but emphasized that this represents a temporary lull typical of such assets. Meanwhile, the focus in the crypto market has shifted towards memecoins, drawing speculators away from more established cryptocurrencies like Bitcoin.
