Solana, the layer-1 blockchain, reached a new all-time high of $264. This comes after years of volatility, including a downturn after the FTX collapse in 2022.
A Long Road to Recovery
Back in 2021, Solana reached its previous all-time high, driven by the hype surrounding its potential as a faster and cheaper alternative to Ethereum. However, in 2022, due to network issues and the FTX collapse, the token dropped to nearly $8. Despite this, Solana has been steadily recovering thanks to developer efforts to improve the network's stability and expand its ecosystem.
A Surge in 2024: The Impact of Political Changes
The recent surge in Solana's price can be partly attributed to the broader crypto market rally following the U.S. presidential election. Donald Trump's victory has generated optimism as his administration is expected to be more crypto-friendly. Additionally, the announcement of Gary Gensler's resignation, perceived as a potential shift towards a more favorable regulatory environment, has also fueled positive sentiment.
The Revival of the Solana Ecosystem
Solana has experienced a resurgence in decentralized application activity, especially with the revival of memecoins like Dogwifhat and Peanut the Squirrel. Its total value locked (TVL) has also grown significantly. As of November 2024, Solana's TVL reached $8.9 billion, marking a 500% increase over the past year.
Solana's market performance is supported by strong institutional backing and the anticipated launch of Solana ETFs. Should these ETFs be approved by the SEC, it could attract additional institutional capital and further boost the token's value.
