Solana (SOL) surged to a new all-time high (ATH) on Friday and is currently trading around $260. The breakout surpassed the previous peak set in November 2021.
Solana has risen to new highs, up more than 32 times from its December 2022 lows.
Gary Gensler plans to resign, Solana stock hits record high
Solana’s path to this new high has not been smooth. After reaching its previous high in 2021, the platform suffered a downturn amid the broader cryptocurrency bear market in 2022, which was further exacerbated by technical issues and network downtime.
The FTX crash in November 2022 caused Solana’s price to drop to around $8.
However, Solana has since staged a remarkable recovery, rising more than 32x from its lows. Now, Solana enthusiasts believe SOL could eventually surpass Ethereum (ETH) in market capitalization.
Solana’s surge in market value coincides with news that SEC Chairman Gary Gensler plans to resign on January 20, 2025, when Donald Trump takes office.
The departure of Gensler, who was known for his strict regulatory stance on cryptocurrencies, suggests that the U.S. government may be shifting toward a more crypto-friendly government. As a result, this political change has sparked speculation about the approval of the Solana exchange-traded fund (ETF). According to Fox Business reporter Eleanor Terrett, the SEC has begun contacting issuers to explore the possibility of a Solana ETF.
Previous efforts to launch a Solana ETF have been hampered by regulatory hurdles, often stalling early in the process. However, the changing political environment and the SEC’s increasingly open approach have rekindled hope in the cryptocurrency community. Recent Solana ETF filings by Canary Capital and BitWise reflect interest and anticipation for regulatory approval.
Despite these encouraging developments, the odds of a Solana ETF being approved in 2024 remain low, with Polymarket estimating the probability at around 4%.
Meanwhile, the crypto community is also keeping a close eye on Bitcoin as it approaches the much-anticipated $100,000 mark. On Friday, Bitcoin hit a new high of around $99,300. The milestone is seen as a pivotal moment for Bitcoin and could impact other cryptocurrencies, including Solana.
