Solana jumps 11% to reach all-time high amid market rally
Quick Take
- Solana gained 11% in the past 24 hours, trading above $263 to reach a new all-time high.
Solana surpassed its all-time high to set a new record late Thursday night, driven by a weeks-long market rally fuled by crypto proponent Donald Trump’s re-election as U.S. president.
According to The Block’s Solana price page, Solana added more than 11% in the past 24 hours to change hands at above $263. The crypto recorded its previous all-time high of $259.96 on Nov. 6, 2021, CoinGecko data shows.
Solana rose to prominence in 2021 as a cheaper and faster substitute for Ethereum, but plummeted as low as $8 around the end of 2022 as a result of the FTX collapse and the following market shock.
The token’s new all-time high took place as the overall cryptocurrency market rallied on the back of anticipation for the upcoming crypto-friendly U.S. administration under Donald Trump. Bitcoin repeatedly rewrote its all-time high following the election result, and XRP also hit its three-year high today after Securities and Exchange Commission Chair Gary Gensler announced his departure from the regulatory agency.
The Block’s GMCI 30 index, which measures the performance of top 30 cryptocurrencies, rose 8% in the past day and 46% over the past month.
The SEC is also “engaging” on S-1 applications for spot Solana exchange-traded funds, according to Fox News reporter Eleanor Terrett, citing two people familiar with the matter. A source at one issuer confirmed with The Block the SEC has started engaging with them on the matter.
“The Solana ecosystem has seen a surge in decentralized application activity and the revival of memecoins, such as Dogwifhat (WIF) and Peanut the Squirrel (PNUT),” said Rachael Lucas, crypto analyst of BTCMarkets. “These projects have fuelled transaction volumes and user engagement, drawing attention to Solana's dynamic ecosystem.”
Lucas noted that Solana dapps have attracted major funding from institutional investors of about $173 million during the third quarter of 2024, marking a 54% quarter-by-quarter increase.
“As Ethereum grapples with rising fees and competition from Layer 2 solutions, Solana has emerged as a compelling alternative, drawing in users and reinforcing its market dominance,” Lucas said.
The article has been updated with comments from the analyst.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
