Original author: Mat Di Salvo
Original title: Solana Jumps to $200 as Bitcoin Price Sets Another All-Time High
Original source: Decrypt
Translation by: Koala, Mars Finance
As Bitcoin continues to set records, confidence is growing that the Trump administration will approve a spot ETF, and Solana has surged as a result.
Solana (SOL) is the fourth-largest cryptocurrency by market capitalization, breaking the $200 mark for the first time in seven months shortly after Bitcoin set its all-time high.
Solana is a layer 1 blockchain network used for issuing tokens and building decentralized applications—from games to decentralized finance (DeFi) platforms. Its native token, SOL, is held by those who support the network and need to pay transaction fees.
According to Coinbase data, the current trading price of SOL is $200. This means it has risen by about 7% in the last 24 hours.
It is one of the biggest winners among the top 20 tokens by market cap over the past week, rising 18% in seven days.
In comparison, Bitcoin has risen 9% over the past week, currently priced at $76,250, slightly down after reaching a new high of $76,872 on Thursday. On Tuesday night, as president-elect Donald Trump seems poised for re-election in the White House, the leading cryptocurrency broke its previous record of $73,737.
Meanwhile, the S&P 500 index closed up 0.7% on Thursday, and the Nasdaq Composite rose 1.5%, both hitting new closing highs as the U.S. stock market continued its post-election rally.
In October, the number of monthly active addresses on Solana hit a record high of over 123 million. Compared to September, the number of unique addresses signing transactions on Solana increased by more than 42%. According to data from DefiLlama, the rise of the pump.fun token has been a major driver of DEX trading volume on Solana, with over $30 billion in trading volume on Raydium last month.
Presto Research analyst Min Jung told The Block: "The recent rebound in the crypto market was driven by Trump’s electoral victory, indicating that the government may be more supportive of cryptocurrencies, combined with the anticipated FOMC performance, pushing the stock market to new historical highs."
Jung noted that Solana has been performing exceptionally well, "driven by strong memecoin activity, sometimes leading to its transaction fees exceeding those of Ethereum," and this "supports a broader Solana ecosystem, including decentralized exchanges like Raydium."
Solana is still down about 23% from its all-time high of around $260 set in November 2021.
During the election, Bitcoin reached new highs, and SOL has therefore surged.
The former U.S. president and real estate mogul will return to the White House in January after a landslide victory on Tuesday night. He has promised to help the digital assets industry, and this week, traders are scrambling to buy crypto tokens and heavily invest in ETFs.
However, Solana's performance has outpaced Bitcoin and many other top cryptocurrencies, in part because there is growing confidence that under the Trump administration, a spot Solana exchange-traded fund (ETF) will be approved in the U.S. During Joe Biden's presidency, the U.S. Securities and Exchange Commission (SEC) classified Solana as an unregistered security.
