Solana (SOL) reached a new all-time high of $264, a rally supported by a long-term market rally and optimism following Donald Trump’s re-election as US president.
Solana Breaks Record, Up 11% as Market Rally Drives
According to CoinGecko data, Solana has gained 11% in the last 24 hours, surpassing its previous record of $259.96 set on November 6, 2021.
The cryptocurrency market has gained momentum amid rising expectations due to the Trump administration’s crypto-friendly policies.
Solana’s surge comes on the heels of Bitcoin’s historic highs and XRP’s three-year highs, which coincided with the announcement that SEC Chairman Gary Gensler would be stepping down.
The GMCI 30 index, which tracks the performance of the 30 largest cryptocurrencies, increased by 8% in the last 24 hours and recorded a 46% increase in the past month, revealing the general momentum in the market.
Some reports share that the SEC is holding discussions with issuers on Solana spot exchange-traded funds (ETF) applications, signaling potential regulatory approval.
These developments seem to align with Solana’s growing decentralized application (dapp) activity and the revival of memecoins like Dogwifhat (WIF) and Peanut the Squirrel (PNUT). “Solana’s dapp ecosystem is rapidly evolving and attracted $173 million in institutional funding in Q3 2024, up 54% from the previous quarter,” said Rachael Lucas, crypto analyst at BTCMarkets.
Solana has made a huge recovery from its 2022 lows of $8 following the FTX crash and market shock.
Solana, once a cheaper and faster alternative to Ethereum, is now solidifying its position in the market with ecosystem growth and competitive advantage.
“As Ethereum faces challenges from rising fees and competition from Layer 2 solutions, Solana stands out as an attractive alternative,” Lucas said, adding that Solana will continue to stand out as a strong competitor.
With the market rally showing no signs of slowing down and institutional interest continuing to grow, Solana is expected to grow further in the coming months.