On Friday, Solana (SOL) surged to an all-time high (ATH), currently trading at around $260. This breakthrough exceeds the previous peak set in November 2021.
Solana has risen to a new high, increasing more than 32 times from its low in December 2022.
Gary Gensler plans to resign, Solana's stock price hits an all-time high
The path for Solana to reach this new high has not been smooth. After reaching a previous high in 2021, the platform faced a downturn in the broader cryptocurrency bear market of 2022, with technical issues and network outages exacerbating the situation.
The collapse of FTX in November 2022 caused Solana's price to drop to around $8.
However, Solana has since achieved a remarkable recovery, rising more than 32 times from its low. Now, Solana enthusiasts believe that SOL's market capitalization could eventually exceed that of Ethereum (ETH).
The surge in Solana's market capitalization coincides with news that the chairman of the SEC, Gary Gensler, plans to resign, effective January 20, 2025, when Donald Trump takes office.
Gensler's departure, known for his strict regulatory stance on cryptocurrencies, indicates that the U.S. government may shift towards a more supportive approach to cryptocurrencies. Consequently, this political change has sparked speculation about the approval of Solana's exchange-traded fund (ETF). According to Fox Business reporter Eleanor Terrett, the SEC has begun discussions with issuers to explore the possibility of a Solana ETF.
Previous efforts to launch a Solana ETF were hindered by regulatory obstacles, often stopping early in the process. However, the changing political landscape and the U.S. Securities and Exchange Commission's increasingly open policy have rekindled hopes within the cryptocurrency community. The recent Solana ETF applications submitted by Canary Capital and BitWise reflect the interest and expectations for approval from regulators.
Despite these encouraging developments, the likelihood of the Solana ETF being approved in 2024 remains low, with Polymarket estimating this probability at about 4%.
Meanwhile, the crypto community is also closely watching Bitcoin as it approaches the highly anticipated $100,000 milestone. On Friday, Bitcoin reached a new high of about $99,300. This milestone is seen as a critical moment for Bitcoin and could impact other cryptocurrencies, including Solana.
