The Solana (SOL) price reached a new all-time high on Thursday night, reflecting the announcement by SEC Chairman Gary Gensler that he will resign from his position in January following Donald Trump’s election victory.
In the last 24 hours, the price of SOL has increased by more than 11% to $263. Solana’s previous peak was recorded at $259.96 in November 2021. Solana, which attracted great attention in 2021 as a faster and more cost-effective alternative to Ethereum, fell to $8 levels towards the end of 2022 due to the FTX bankruptcy and general market conditions.
SOL’s new high is seen as a reflection of the general market recovery that has been strengthened by the reemergence of crypto-friendly policies following the US elections. While Bitcoin has been constantly breaking new records in the post-election period, XRP has also reached its highest level in the last three years after SEC Chairman Gary Gensler announced that he will be leaving office.
According to Fox News’ Eleanor Terrett, the SEC has begun reviewing applications for spot Solana exchange-traded funds (ETFs). The SEC has reportedly begun discussions with some issuers on the matter.
Rachael Lucas, a crypto analyst at BTCMarkets, noted that the increasing use of decentralized applications (DApps) in Solana’s ecosystem and the resurgence of memecoins like Dogwifhat (WIF) are driving the SOL price. Lucas said that these projects have increased interest in the Solana ecosystem, leading to significant growth in transaction volumes and user engagement.
Lucas also emphasized that there was approximately $173 million worth of institutional investment fund inflow into the Solana ecosystem in the third quarter of 2024, a 54% increase compared to the previous quarter.
Ethereum’s$ETH
Lucas, who drew attention to the increasing transaction fees and the difficulties of competing with Layer 2 solutions, stated that Solana stood out as an attractive option for users in this process and strengthened its market share.