On November 22, Solana (SOL) achieved a remarkable milestone by reaching a new record high of $262.64 on Coinbase, marking a significant recovery since the downturn that followed the collapse of the FTX exchange two years earlier. This price surge was supported by an impressive 11% gain within just 24 hours, underlining Solana ’s role as one of the standout altcoins of the year, with an overall increase of 160% since the start of 2024.
The token’s journey to recovery has been stark, especially reflecting on its dramatic fall to a low of under $10 in December 2022, influenced by the fallout from Sam Bankman-Fried’s FTX empire. This recent price surge can be attributed in part to new filings submitted by multiple firms, including Bitwise and VanEck, for spot Solana exchange-traded funds, which have helped boost investor confidence. Analysts are now setting ambitious targets for SOL, projecting it could potentially reach $400 following the breach of its prior high.
Demand for Solana has been largely fueled by increased interest in memecoins, as the network offers a cost-effective and user-friendly platform for minting these digital assets. Additionally, decentralized finance (DeFi) activities on Solana have shown remarkable progress, with the total value locked in DeFi protocols skyrocketing by over 500% this year, now standing at $8.8 billion.
In the broader cryptocurrency landscape, optimism has surged amid expectations of a more favorable regulatory environment, particularly in light of the anticipated changes following Donald Trump’s political activities. As of November 22, the total market capitalization of cryptocurrencies reached an all-time high of $3.42 trillion. Positive sentiments were further amplified by the upcoming resignation of SEC Chair Gary Gensler, who had consistently categorized most cryptocurrencies as securities, making the market more bullish. Alongside Solana , other cryptocurrencies such as XRP , Cardano (ADA), and Avalanche (AVAX) were also experiencing significant gains.
