Tanahub.com — Solana (SOL) has successfully reached a new all-time high (ATH) of over $260 on Friday, November 22, 2024. This achievement comes nearly two years after the collapse of the FTX crypto exchange, which caused Solana’s price to plummet to almost $8.
This surge is believed to be driven by the filing of Solana spot exchange-traded funds (ETFs) by several major financial firms, including Bitwise, VanEck, 21Shares, and Canary Capital.
The rising demand for SOL is also fueled by memecoin speculation, as Solana allows tokens to be minted at lower costs and with a simpler process.
Positive momentum was further bolstered by market sentiment following the victory of pro-crypto Republican candidate Donald Trump in the United States Presidential Election.
Additionally, reports that the Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, known for his strict policies on the crypto industry, will step down on January 20, 2025, have boosted market optimism.
The decentralized finance (DeFi) sector on Solana has also experienced extraordinary growth, with total value locked (TVL) increasing by over 500% this year, reaching $8.8 billion.
Since the beginning of 2024, Solana has been one of the best-performing altcoins, with a price increase of 160%.
According to CoinMarketCap data, SOL has risen 11% in a single day, 23% in the past week, and surged 55% in the last month. Year-to-date, SOL has skyrocketed by 386%.
Previously, Solana hit its ATH in 2021 after gaining popularity as a faster and cheaper alternative blockchain compared to Ethereum.
However, enthusiasm waned due to various technical issues, including network disruptions and the impacts of the global crypto bear market.
The collapse of FTX in late 2022 dealt a heavy blow to Solana, with SOL prices plunging to record lows because of the network’s close ties to FTX founder Sam Bankman-Fried.
Two years later, Solana has made a comeback. Its developers have worked tirelessly to improve network stability, while Solana Labs continues to expand its innovations.
These efforts have successfully strengthened community trust and driven greater adoption within the Solana ecosystem.
Solana’s success aligns with the overall bullish trend in the crypto market. Bitcoin has also set a new record, surpassing $99,000 on this Friday.