In a remarkable turn of events, Solana (SOL) has shattered its previous all-time high, hitting $264.31 on Coinbase just two years after the infamous FTX collapse. This significant price movement, which occurred on November 22, 2024, marks a recovery for Solana, which had faced a steep decline following the downfall of Sam Bankman-Fried’s crypto empire.
Over the past 24 hours, Solana’s price surged by a staggering 11%, adding to its impressive 160% increase since the dawn of 2024. This altcoin, having reached a low of just below $10 in December 2022, has once again captured the attention of investors and enthusiasts alike.
The recent momentum is attributed to several key factors:
- The filing of spot Solana exchange-traded funds (ETFs) by notable firms such as Bitwise, VanEck, 21Shares, and Canary Capital;
- A growing speculation around memecoins which are cheap and easily mints on the Solana network;
- The rise of Decentralized Finance (DeFi) within the Solana ecosystem, experiencing over a 500% increase in total value locked, now reaching $8.8 billion according to DefiLlama.
Moreover, the crypto market’s bullish sentiment has been fueled by the anticipated regulatory changes under potential political shifts, particularly with the implications of SEC Chair Gary Gensler stepping down in January. During his tenure, Gensler had categorized nearly every crypto asset, aside from Bitcoin, as securities, which cast a long shadow over the altcoin market.
As Solana continues to thrive, analysts are optimistic, with projections suggesting that the asset could edge towards a new high of $400 if it maintains its trajectory. Alongside Solana, other altcoins like XRP, Cardano (ADA), and Avalanche (AVAX) are also witnessing substantial gains, contributing to a total market capitalization that soared to an unprecedented $3.42 trillion on the same day.
This resurgence not only underscores Solana’s resilience but also highlights the dynamic landscape of the cryptocurrency market as it continues to evolve post-FTX debacle.
