Peanut

Solana

Value

Peanut the Squirrel

Solana ($SOL), the layer-1 blockchain, reached a new all-time high of $264, according to&nbsp;<a style="text-decoration:none" href="https://www.tradingview.com/chart/?symbol=COINBASE%3ASOLUSD">TradingView</a>. This surge comes after years of volatility, including a major downturn following the collapse of FTX in 2022.
Let’s explore the key factors behind Solana’s rise:
<h2 dir="ltr" id="span-span-a-long-road-to-recovery-span-span">A Long Road to Recovery</h2>
Back in 2021, the token reached its previous all-time high, driven by hype around its potential as a faster and cheaper alternative to Ethereum. However, as the market cooled in 2022, the Solana blockchain faced several challenges.&nbsp;
&nbsp;
Technical issues, including network downtimes, and the collapse of FTX, closely tied to Solana, caused the token to plunge to nearly $8 by the end of 2022.
&nbsp;
Despite these setbacks, Solana has been steadily recovering, fueled by developer efforts to improve the network’s stability and expand its ecosystem. This includes Solana Labs’ foray into mobile phone hardware and apps, showing a clear long-term vision for the blockchain.
<h2 dir="ltr" id="span-span-a-surge-in-2024-the-impact-of-political-changes-span-span">A Surge in 2024: The Impact of Political Changes</h2>
The recent surge in Solana’s price can be partly attributed to the broader crypto market rally following the U.S. presidential election. With Donald Trump&nbsp;<a style="text-decoration:none" href="https://www.cbsnews.com/news/donald-trump-win-presidency-2024/">securing a victory</a>, there is growing optimism in the crypto industry.&nbsp;
&nbsp;
Trump has promised a more crypto-friendly administration, which has likely boosted investor confidence. This sentiment has been reflected in the performance of several cryptocurrencies, including Bitcoin, XRP, and now Solana.
&nbsp;
Another significant factor behind the surge is the news that Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), will&nbsp;<a style="text-decoration:none" href="https://www.bbc.com/news/articles/c20nyxperjpo">resign</a> in January 2025. Gensler’s tenure has been marked by a crackdown on the crypto industry, and his departure is seen as a potential shift towards a more favorable regulatory environment under the incoming Trump administration.
<h2 dir="ltr" id="span-span-the-revival-of-the-solana-ecosystem-span-span">The Revival of the Solana Ecosystem</h2>
Solana has seen a resurgence in decentralized application (dApp) activity, particularly with the revival of memecoins like Dogwifhat (WIF) and Peanut the Squirrel (PNUT). These projects have generated significant transaction volumes and user engagement, helping to draw attention to Solana’s dynamic ecosystem.
&nbsp;
Solana’s total value locked (TVL) has also experienced impressive growth. On November 22, 2024, Solana’s TVL reached&nbsp;<a style="text-decoration:none" href="https://defillama.com/chain/Solana">$8.9 billion</a>, marking a 500% increase in a year. This is a notable improvement from the mere $353 million TVL recorded in October 2023.&nbsp;
&nbsp;
Additionally, Solana’s decentralized finance (DeFi) projects have attracted institutional investors, with $173 million in funding during Q3 2024. This marks a 54% increase compared to the previous quarter.
<h2 dir="ltr" id="span-span-solana-etfs-span-span">Solana ETFs</h2>
Solana’s market performance has been buoyed by strong institutional support, which has helped fuel a rise in its market capitalization.&nbsp;
&nbsp;
An important development for Solana’s price is the anticipation surrounding the launch of Solana exchange-traded funds (ETFs). According to&nbsp;<a style="text-decoration:none" href="https://x.com/EleanorTerrett/status/1859611713579999366">reports</a>, the SEC is engaging with issuers on Solana ETFs, which could open the doors for institutional investment in the blockchain. If the SEC approves Solana ETFs, the influx of institutional capital could drive the price even higher, creating more momentum for the token.
&nbsp;
As of now, Solana’s market cap has soared to $123 billion, and its trading volume has surged to $10.87 billion in just one day, representing a 52% increase.

Solana ($SOL) Hits All-Time High of $264: Possible Factors Behind the Surge

Table of Contents

BSCN

Other articles published on Dec 3, 2024

Why Is Chainlink (LINK) Price Up?

Bitcoin Miner MARA Expands Mining With New 114-Megawatt Wind Farm

How to Leverage FX Guys to Beat Market Volatility and Stay Profitable

Binance Labs New Investment: What is Kernel?

South Korea’s Crypto Trading Smashes Stock Market Records

SBI VC Trade to Acquire DMM Bitcoin's Assets Post-Hack

Join our free newsletter for daily crypto updates!