SOL Analysis: Price Hits New ATH as SEC Chairman Gary Gensler Announces Resignation

On Friday, Solana (SOL) reached a new All-Time-High (ATH), currently trading at around $261. This breakthrough surpassed the previous peak set in November 2021.

Solana's growth to a new ATH marks an increase of over 32 times from the low recorded in December 2022.

Solana Overcomes Challenges to Reach New Peak

Solana's path to this new high was not smooth. After reaching its previous peak in 2021, the platform faced a decline in 2022 amid the crypto market downturn, as well as technical issues and network outages. The collapse of FTX in November 2022 had pushed Solana's price down to around $8.

Also Read: FTX Plans Restructuring to Take Effect in January 2025

However, Solana has made a remarkable recovery, increasing more than 32 times from its low. Solana enthusiasts now believe that SOL could surpass Ethereum (ETH) in market capitalization.

"Solana has reached an all-time high market capitalization for a period of time. Now, we're truly discovering the price. The change is coming,"

Birch, the founder of PathCrypto, said.

The increase in Solana's market value coincides with news about SEC Chairman Gary Gensler's planned resignation, expected on January 20, 2025, when Donald Trump takes office.

Known for his strict crypto regulatory stance, Gensler's departure signals a potential shift towards a more crypto-friendly administration. This political change is sparking speculation about the approval of a Solana ETF. According to Fox Business reporter Eleanor Terrett, the SEC has started discussions with issuers to explore the possibility of a Solana ETF.

"Discussions between SEC staff and issuers looking to launch a Solana Spot ETF are 'progressing' with the SEC now engaged in S-1 filings. The recent staff engagement, coupled with the incoming crypto-friendly administration, is sparking new optimism that a Solana ETF could be approved at some point in 2025,"

Terrett confirmed.

Previous efforts to launch a Solana ETF have been hindered by legal barriers, often stalling early in the process. However, the changing political environment and the SEC's increasing openness have reignited hope in the crypto community. Recent filings for a Solana ETF by Canary Capital and BitWise reflect the growing interest and expectation for regulatory approval.

While these encouraging developments are taking place, the likelihood of a Solana ETF being approved in 2024 remains low, with Polymarket estimates placing it around 4%. Nevertheless, the active dialogue and favorable market sentiment may mark important milestones in the integration of cryptocurrencies into mainstream financial products.

Meanwhile, the crypto community is also closely watching Bitcoin as it approaches the anticipated $100,000 milestone. On Friday, Bitcoin reached a new high of around $99,300. This milestone is seen as a significant moment for Bitcoin and could have a substantial impact on other cryptocurrencies, including Solana.

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