VanEck adds staking to solana-based investment product
The ETN is traded on Euronext Amsterdam.
Investors get 75% of the rewards, the remaining 25% goes to VanEck.
VanEck, an investment firm, reported that it included staking rewards in its solana-based market-traded notes (ETN) (SOL) traded on the Euronext Amsterdam in the Netherlands.
From now on, the rewards generated by VanEck Europe They will be reinvested daily and reflected in the daily net asset value (NAV) of the instrument. This change represents a new form of passive income for ETN investors, which It currently has a market capitalization of $74 million.
As CriptoNoticias has explained, staking consists of leaving cryptocurrencies deposited in a smart contract or exchange in order to receive profits. It is a form of investment in which funds are locked in for a specific period.
Likewise, staking fulfills operational and security functions for the network in which it is carried out, in this case Solana, since it is an alternative to traditional cryptocurrency mining.
Investors receive 75% of the gross rewards in SOL, while 25% goes to VanEck in commissions.
In it document that the firm published, it is clarified: “Staking rewards depend on a series of factors that are outside our control, such as the number of validators in the network and the demand for Solana transactions. The staking yield on Solana generally ranges between 7 and 9% per year.” This performance does not refer to earnings in dollars but in SOL.
It is worth remembering that VanEck also submitted an application to the United States Securities and Exchange Commission (SEC) to launch an ETF based on SOL on the US market. At that time, the head of digital asset research at the VanEck firm, Matthew Sigel, opined that it is a unique and It is a commodity (commodity) that provides access to a major open source app store such as wallets and decentralized finance (DeFi) protocols.
Sigel also opined that ETFs based on this asset “will eventually be approved by regulatory entities.”
An increase in interest in VanEck ETNs, coupled with a possible approval of SOL-based ETFs in the United States, could encourage greater institutional participation in this digital asset.
This boost could translate into an increase in SOL’s price, in addition to attracting new users and increasing liquidity in its ecosystem.
Activity increases in Solana
The price of SOL rose more than 8% in the last 7 days thanks to an increase in network activity and its price is currently above $167, as seen in the following chart. TradingView.
This price increase is linked to the increase in activity on its network. So far in October, Solana registers an increase in the number of active addressesindicating that there are more users participating in the ecosystem.
According to data from DefiLlamadaily transaction fees on Solana rose to almost $4 million in the last 24 hours, the highest level since June 2024. In this way, it surpassed the Ethereum ecosystem.
Finally, we must mention the success of pump.fun, Solana’s memecoin creation platform, which since its launch in February 2024 attracted users and provided more liquidity to the ecosystem. So far, it has generated more than 985,000 SOL, the equivalent of 166 million dollars.