- Solana overtakes BNB in market cap.
- SOL’s price increased by 17%.
- Trump came out in favor of crypto assets.
The shocking Trump landslide is reverberating across the crypto landscape. With Bitcoin reaching an all-time high, many altcoins are seeing double-digit gains. Solana is one of them, surging over 17% after the election news.
Following the election, Solana rushed ahead of BNB, making it the fourth-largest crypto asset. Experts believe Solana is among the biggest potential beneficiaries of Trump’s favorable position toward crypto.
Why Solana Took Fourth Place Post-Election
Following a landslide win for the former Republican President Donald Trump, Solana gained momentum. On election day, Wednesday, November 5, SOL jumped 17%, reaching a price of $188. This surge pushed its market cap to $85 billion, overtaking Binance Coin (BNB). Solana is now the fourth-largest crypto asset after Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
Solana’s rise follows a broader bullish momentum in the crypto market. Notably, Trump’s statements during the campaign have made investors think that he would favor more crypto-friendly regulation, which is especially important for altcoins like Solana.
Solana’s Path to ETF Approval After Trump Victory
Investors are bullish on the potential approval of Solana Exchange Traded Funds (ETFs). If approved, these funds would open up institutional investors to Solana, boosting its market cap and liquidity.
Before the election, experts were skeptical about Solana ETFs. In particular, the current chair of the Securities and Exchange Commission, Garry Gensler, is unlikely to approve such a fund. Despite an earlier approval of Ethereum ETFs, Solana has a disadvantage, as it lacks a regulated futures market.
Earlier, experts from VanEck suggested that Trump’s victory will likely improve the odds for approval. VanEck was the first fund manager to file paperwork for a Solana ETF. Still, at the time, they acknowledged that a leadership change in the SEC would be required for the fund to be viable. With Trump in office, this change is very likely.
On the Flipside
- It is not yet clear what the effect of a potential approval for a Solana ETF would be. Earlier, experts from BlackRock and Sygnum Bank suggested that there is little institutional interest in Solana ETFs.
- Other than Solana, Ripple’s XRP is also a potential candidate for its own ETF.
Why This Matters
The changing regulatory environment for crypto after Trump’s election will significantly impact crypto. Assets like Solana stand to gain the most.
Read more about ETFs:
What Is a Spot Bitcoin ETF, and Why Is It So Important?
Read more about memecoins:
How High Can the Memecoin Market Go? ArkStream Capital Forecasts
