Solana achieved a record high on Nov. 22, marking a major milestone two years after the collapse of the FTX exchange, which had significantly impacted its price.
On Coinbase, Solana (SOL) reached $264.31, as reported by TradingView, following an impressive 11% gain over the previous 24 hours.
SOL has been one of the top-performing altcoins in 2024, with a 160% increase since the year began.
The token had dropped to a cycle low of under $10 in December 2022, following the downfall of Sam Bankman-Fried’s FTX crypto empire.
Momentum for Solana has surged recently due to filings from Bitwise, VanEck, 21Shares, and Canary Capital to launch spot Solana exchange-traded funds (ETFs).
Analysts are now targeting $400 for SOL, especially as it surpasses its previous all-time high of $260.
The growing demand for Solana has been largely driven by memecoin speculation, as the network offers an affordable and straightforward process for minting tokens.
Additionally, Solana’s decentralized finance (DeFi) ecosystem has flourished, with a total value locked (TVL) increase of over 500% this year, now reaching $8.8 billion, according to DefiLlama.
The broader crypto market has also been invigorated by optimism surrounding a potentially friendlier regulatory environment under President-elect Donald Trump.
This sentiment has pushed the total cryptocurrency market capitalization to an all-time high of $3.42 trillion on Nov. 22.
Altcoins have further benefited from the announcement of SEC Chair Gary Gensler’s resignation in January.
Gensler, during his tenure, had maintained that nearly all crypto assets apart from Bitcoin were securities.
Other altcoins, including XRP, Cardano (ADA), and Avalanche (AVAX), are also seeing significant gains.
XRP surged 27% to reach $1.40, while ADA and AVAX recorded double-digit increases during early trading on Nov. 22.
