Solana, a popular cryptocurrency, has experienced rapid growth recently, with its price climbing close to its all-time high of $249.98 in 2021. At the time of writing, SOL, the native coin of Solana, was trading above $235, a 320.67% increase from the previous year. Solana has become a major player in the cryptocurrency world, competing with names like Bitcoin and Ethereum.
The coin is used for transactions in crypto casinos and online purchases, and currently has a market cap of over $111.90 billion. The question arises: how did Solana go from being a $1-per-token coin to one of the most promising cryptocurrencies on the market? To answer this, let’s examine Solana’s recent growth and the phenomenon of memecoins on the platform.
Solana’s rapid growth can be attributed to several factors. First, the platform has seen a significant increase in DEX volume, surpassing Ethereum in November 2024, with $77.51 billion compared to Ethereum’s $38.81 billion. This growth can be traced back to the US elections and the subsequent changes in the Securities and Exchange Commission (SEC) leadership.
President-elect Donald Trump, a vocal supporter of cryptocurrencies, promised to implement more lenient legal frameworks for the industry. This led to the current SEC chairman, Gary Gensler, announcing his resignation, opening the door for a new, crypto-friendly chairman. The potential for increased regulatory support has resulted in a surge in demand for cryptocurrencies like SOL, ETH, BTC, DOGE, and others.
Another factor is the emergence of spot Solana ETFs. Several Wall Street firms have applied for these investment vehicles, which would allow investors to trade SOL on exchanges. Asset managers like Bitwise and Canary Capital have already filed for a spot Solana ETF and are awaiting approval from the SEC.
Considering the bright future for this department, many crypto experts predict that spot Solana ETFs will receive approval. Solana’s speed and affordability have also contributed to its success. The coin started at $1 and has since experienced over a 200% increase in value. The platform can process a large number of transactions in a short time, making it attractive to DEX users.
The Solana network can handle around 65,000 transactions per second with minimal fees. This has attracted developers to create projects on the platform, further boosting the popularity of SOL. Finally, the rise of memecoins on the Solana network has played a role in its growth. Platforms like Pump.Fun have gained popularity, attracting traders looking for short-term gains.
However, it is essential to recognize the risks associated with these memecoins, as they are often less secure and more unpredictable than established cryptocurrencies like Bitcoin and Ethereum. Despite these risks, Solana’s future looks promising. Expert predictions place Solana’s value between the mid-hundreds in the coming years, ranging from $220 to $750.
While the exact figure may vary, most experts agree that SOL will continue to grow steadily, potentially experiencing a significant bullish move next year.
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<p>The post All Aboard the Solana Express: Memecoin Mania and the Rise of Solana first appeared on CoinBuzzFeed.</p>
