Having experienced a collapse of over 95% during the 'crypto winter,' Solana's native token SOL has now made a strong comeback, not only returning to its peak but also breaking through the historical high set in 2021, reaching $260 today, once again becoming the focus of the market.
According to CoinGecko market data, SOL reached a high of $262.93 today and was reported at $262.06 at the time of writing, having surged over 10% in the past 24 hours, and an astonishing increase of 380% over the past year.
From the bottom to the top, Solana makes a perfect comeback
SOL has set a new historical high, coinciding with the two-year anniversary of the collapse of FTX and Alameda Research—two companies that were significant investors in the Solana ecosystem. Therefore, after the collapse of FTX, SOL was hit particularly hard, experiencing severe liquidity tightening, leading to a sluggish price that plummeted to $8 by the end of 2022.
Now, as market confidence gradually recovers, SOL has finally welcomed its moment of glory. Behind SOL's rebound, multiple favorable factors have coalesced, including the 'meme coin trading frenzy,' the explosion of 'decentralized finance (DeFi)' activities, and an increasing influx of 'institutional funds.'
U.S. Solana ETF sees dawn
Meanwhile, since Donald Trump was elected president of the United States, the cryptocurrency community's expectations for the Solana ETF to be approved for listing in the U.S. have been steadily rising.
Earlier, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), known as the 'public enemy of the crypto world,' announced that he will resign on January 20 next year, paving the way for Trump's cryptocurrency-friendly policies.
According to Fox Business reporter Eleanor Terrett, the U.S. SEC is currently engaged in 'constructive' dialogues with several ETF issuers to discuss the details of launching a Solana ETF.
She cited sources indicating that the SEC has begun actively processing S-1 applications, which is an important procedure for applying for ETF listings. She stated:
With Trump's cryptocurrency-friendly policies gradually emerging, market confidence in the approval of the Solana ETF is continuously strengthening.
SCOOP: Talks between @SECGov staff and issuers looking to launch a $SOL spot ETF are 'progressing' with the SEC now engaging on S-1 applications, according to two people familiar with the matter. These people say there's a 'good chance' we'll see some 19b4 filings from...
— Eleanor Terrett (@EleanorTerrett) November 21, 2024
However, due to the ongoing transition between the old and new administrations, substantial progress may not be seen until 2025. Nevertheless, market sentiment has clearly changed, with multiple institutions, including Canary Capital, VanEck, and 21Shares, having submitted applications for the Solana ETF, while BitWise stated on Thursday that it will join the battle.
Looking back, the SEC has always had a conservative attitude towards cryptocurrency ETFs. In September this year, Polymarket investors estimated that the likelihood of Solana ETF approval was only 3%. Now, along with changes in the political environment, this number is rapidly climbing.
Eleanor Terrett pointed out: 'The inauguration of the Trump administration is the key driver of this turnaround. The dialogue between the SEC and applicants is becoming more frequent, and the market is gradually igniting hope.'
Solana's comeback is no longer just about soaring prices but represents a new chapter that shakes the industry.
"The U.S. 'Solana ETF' finally has progress! This has propelled SOL to break through $260 and set a new historical high," this article was first published on (BlockKe).
