On Friday, Solana (SOL) reached a new all-time high (ATH) of around $261. This breakthrough surpassed the previous high set in November 2021.
Solana's new ATH represents a more than 32-fold increase from the lowest point recorded in December 2022.
Broke through the $260 mark, recording the highest price since November 2021
Solana's journey to this new peak was not smooth. After reaching the previous high in 2021, the platform experienced a downward trend during the widespread cryptocurrency bear market in 2022, further exacerbated by technical issues and network downtime.
The collapse of FTX in November 2022 drove Solana's price down to around $8.
However, Solana has since made a remarkable recovery, increasing more than 32-fold from its lowest point. Now, Solana supporters believe that SOL may eventually surpass Ethereum (ETH) in market capitalization.
"Solana has been the market cap leader for a while now. We are finally in the price discovery phase. The flippening is coming." - PathCrypto founder Birch said.
The surge in Solana's market value coincides with the news of SEC Chair Gary Gensler's planned resignation, scheduled for January 20, 2025, when Donald Trump takes office.
Gensler's departure, known for his strict regulatory stance on cryptocurrencies, suggests a transition to a more cryptocurrency-friendly administration. This political change has sparked speculation about the potential approval of a Solana exchange-traded fund (ETF). According to Fox Business reporter Eleanor Terrett, the SEC has begun discussions with issuers to explore the possibility of a Solana ETF.
"Discussions are underway between issuers looking to launch a Solana spot ETF and SEC staff. The SEC is now engaging on the S-1 filings. The incoming crypto-friendly administration, coupled with the recent staff engagement, has sparked new optimism that a Solana ETF could be approved sometime in 2025." - Terrett claimed.
Previous efforts to launch a Solana ETF were often halted in the early stages due to regulatory hurdles. However, the changing political landscape and the SEC's increased openness have reignited hope within the cryptocurrency community. The Solana ETF applications from Canary Capital and BitWise reflect the growing interest and expectations for regulatory approval.
Despite these encouraging developments, the likelihood of a Solana ETF approval in 2024 remains low, with Polymarket's estimate at around 4%. Nevertheless, the positive dialogue and favorable market sentiment could serve as an important milestone in the integration of cryptocurrencies into mainstream financial products.
Meanwhile, the cryptocurrency community is closely watching Bitcoin as it approaches the anticipated $100,000 mark. On Friday, Bitcoin recorded a new high of around $99,300. This milestone is considered a significant moment for Bitcoin and could have a significant impact on other cryptocurrencies, including Solana.
