Solana (SOL) has recorded a brand new all-time excessive (ATH) of $262, marking a historic restoration after three years of tumultuous value motion. Notably, the token had as soon as fallen as little as $8 on the peak of the FTX alternate collapse and the following crypto bear market.
Solana Makes Historic Restoration, Eyes USDT Flippening
Solana (SOL), the much-touted “Ethereum killer,” is once more within the highlight. After dominating the 2020-21 crypto bull market, the digital asset noticed its worth plummet after FTX’s spectacular collapse, led by Sam Bankman-Fried. Nonetheless, SOL has staged a formidable comeback during the last two years.
On the time of writing, SOL is the fourth-largest cryptocurrency, with a reported market cap of over $123 billion. The layer-1 blockchain’s market cap is simply $8 billion shy of overtaking stablecoin Tether’s (USDT) market cap of $130 billion.
Notably, SOL wants an extra 10% value appreciation to decisively enhance USDT’s market cap and turn out to be the third-largest digital asset by market cap. SOL will solely path Bitcoin (BTC) and Ethereum (ETH) because the third-largest cryptocurrency.
Given the token’s current value trajectory, it received’t be stunning to see SOL surging previous the main stablecoin’s market cap earlier than the tip of the yr. Within the final three weeks alone, the token has skilled a outstanding 75% surge, rising from $148 on November 4 to $259 on the time of writing.
Whereas the broader crypto market has gained momentum following the victory of pro-crypto Republican US presidential candidate Donald Trump, attributing SOL’s rise solely to this could be disingenuous.
Memecoin Frenzy, Elevated Community Exercise, ETF Potential Helped SOL
SOL’s outstanding turnaround might be linked to a number of elements which have spurred elevated community adoption. One of the vital outstanding contributors is the continuing memecoin frenzy, which has emerged as a dominant narrative within the crypto market.
Memecoins – notably these based mostly on the Solana blockchain – have emerged because the crypto market’s prime narrative during the last yr. In October alone, the entire market cap of Solana-based memecoins surpassed $10 billion.
This memecoin craze has additionally translated into heightened community exercise for Solana. Between September and October, Solana noticed a 42% month-over-month (MoM) enhance in energetic addresses, amounting to roughly 123 million.
Apart from benefitting from the memecoin narrative, Solana has additionally seen elevated decentralized finance (DeFi) exercise all year long. In line with DefiLlama knowledge, Solana is dwelling to the second-largest DeFi ecosystem on this planet, with a complete worth locked (TVL) of $9.265 billion.
As well as, there are rising prospects for a Solana-based exchange-traded fund (ETF). A current report signifies that the US Securities and Trade Fee (SEC) is holding energetic talks with a number of asset managers concerning the potential launch of a brand new spot Solana ETF.
Whereas SOL’s achievement of a brand new ATH is spectacular, consultants consider the token nonetheless has important development potential. On the time of writing, SOL trades at $259, up 6.2% over the previous 24 hours.
