- Solana price hits $200 amid record transaction volumes.
- Fed’s rate cuts and political developments trigger optimism.
- Solana ETFs could be coming in 2025.
The crypto market is once again entering a major bullish phase as valuations reach all-time highs. Bitcoin recently hit its new ATH of $76,943 after a surge of optimism on US elections.
Solana saw even greater gains, recently breaking $200. This rise was accompanied by a surge in network activity, resulting from the excitement over a potential Solana ETF approval after the election.
Solana Breaks $200 on Bullish Momentum
Recent developments pushed Solana to multi-year highs. On Friday, November 8, Solana reached $200 for the first time since November 2021, right before the FTX crash. A surge in blockchain volume accompanied the recent price increase.
According to data from DefiLlama, Solana processed over $2.28 billion in daily perpetual trading volume on November 6. This increase in volume was due to increased activity on Solana-based decentralized exchanges (DEXs).
Exchanges like Jito, Kamino, and Jupiter have experienced significant spikes in usage levels. Notably, Jito reported an 18.92% increase in transactions over the last seven days, while Kamino and Jupiter reported 12.92% and 15.29%, respectively.
Monetary Policy, Elections Boost Solana
The recent surge in Solana’s price and network activity came after bullish elections and monetary policy news. For one, the Federal Reserve announced a 0.25% rate cut, meaning that borrowing money costs are lower.
Easy money boosts high-risk, high-growth assets such as Solana. Lower interest rates make risky investments comparatively attractive, meaning more investors are willing to pursue them. This boosted crypto assets across the board, including Solana.
At the same time, Solana benefited from the recent election win of former Donald Trump. Trump presented himself as a staunch defender of crypto assets. He also suggested he would remove the current Securities and Exchange Commission (SEC) chair, Gary Gensler. A change in the SEC’s leadership could pave the way for a Solana Exchange Traded Fund (ETF), opening up SOL for institutional investors.
On the Flipside
- After the recent approval of Ethereum ETFs, Solana was seen as one of the biggest candidates for the next altcoin ETF.
- Despite ETF optimism, experts from BlackRock tempered expectations for Solana. They suggested that there is little institutional interest beyond Bitcoin and Ethereum.
Why This Matters
Recent performance boosts Solana’s case as the top altcoin. The potential for Solana ETFs also opens it up for institutional investors, who hold substantial capital.
Read more about Solana EFTs:
Why a Solana ETF Could Be Closer Than You Think
Read more about crypto in China:
Crypto Entangled in Chinese Corruption, Espionage Case
