Cathie Wood Endorses Solana

Cathie Wood, the CEO of ARK Invest, has recently thrown her support behind Solana (SOL), leading to a significant surge in its value. Following her endorsement, SOL saw an impressive 17% increase, reaching new highs for the year.

During a CNBC interview on November 15, Wood highlighted Solana’s efficiency and cost-effectiveness, praising its performance in the current market environment. She commended Solana for being a key infrastructure component in the blockchain ecosystem, noting its superior speed and efficiency compared to Ethereum. Wood remarked, “Ether was faster and cheaper than Bitcoin back in the day — that’s how Ether emerged. Solana, however, is even faster and more cost-effective than Ether.”

Wood acknowledged both Ethereum and Solana as vital layers in the blockchain infrastructure, emphasizing their potential for more real-world applications than Bitcoin. This comes as the broader crypto market experiences an upward trend, with Solana’s recent gains of over 197% in the last month dramatically outperforming the increases of major cryptocurrencies like Bitcoin and Ether, which have risen 32% and 28% respectively in the same period.

Additionally, Wood touched on the current market’s anticipation for several Bitcoin spot exchange-traded fund (ETF) products. While acknowledging their significance, she advised maintaining focus on the fundamental importance of Bitcoin as a “money revolution,” cautioning against getting overly fixated on short-term price fluctuations.

Wood also speculated on the potential for a “sell on the news” scenario. In such a situation, investor excitement for an event, such as the approval of Bitcoin spot ETFs, could exceed actual market demand for the event itself, possibly resulting in a rapid sell-off soon after.