Solana attracted attention by reaching an all-time high, driven by positive news flow.
Solana (SOL) has reached a new all-time high (ATH) of $262.92, driven by the strong rally in the cryptocurrency markets and the successive positive developments. This rise shows that Solana, which fell to $8 levels towards the end of last year, has made a major recovery and made a huge comeback. Solana, which has increased by 11% in the last 24 hours, has shown an impressive growth of 360% on an annual basis.
The main reasons for this increase include the announcement of the US-based spot Solana ETF, the statements that FTX will start paying back by March 2025, and the news that SEC Chairman Gary Gensler will leave office in January. These developments increased investors' confidence in Solana.
Another important factor that has reinforced Solana’s rise is the increasing decentralized finance (DeFi) activities on the network and the recent meme coin trading. Projects like “Dogwifhat (WIF)” and “Peanut the Squirrel (PNUT)” have increased the transaction volume on the network and redirected user interest to Solana.
Analyst Rachael Lucas noted that institutional investors invested $173 million in Solana dApps in the third quarter of 2024 alone, a 54% increase quarter-over-quarter. “With Ethereum’s rising transaction fees and competition from Layer 2 solutions, Solana stands out with its speed and cost advantages,” Lucas said.
Donald Trump’s victory in the US presidential election and the upcoming appointment of a crypto-friendly administration have been a strong catalyst for Solana. The decision to resign by SEC Chairman Gary Gensler and the possibility of a Solana-based spot ETF have increased investor interest and strengthened market confidence. The news that the SEC is holding constructive discussions regarding Solana ETF applications suggests that this development has created confidence in the market.
This rise in Solana is not limited to it; a similar rally is observed in the entire cryptocurrency market. While Bitcoin broke records with Trump’s presidential victory, SEC Chairman Gensler’s decision to leave office managed to push XRP to a three-year high. The GMCI 30 Index increased by 8% in just one day and rose by 46% in the last month.
Having started to recover after the difficult crypto winter of 2022, Solana continues to become a new powerhouse in the crypto ecosystem with both its technical features and market dynamics.
