Solana Price Surges to All-Time High

The Solana price soared to $264.31 on Coinbase on Nov. 22, breaking its 2021  all-time high. The token surged 11% within 24 hours, cementing its position as one of the best-performing assets in 2024.

This recovery is remarkable, given that the crypto experienced a tumultuous period after the collapse of FTX, which significantly impacted the value of the Solana token. The token’s resurgence has been fueled by increased market optimism, with the Solana price experiencing a 160% gain since the beginning of 2024.

Its recovery began after it hit a cycle low of under $10 in December 2022, a stark contrast to its current bullish trajectory. In the week of the US election, Solana noted 172 million transactions, highlighting a notable surge in network usage.

Recent market activity has provided further support for the Solana price momentum. Filings from VanEck, Bitwise, Canary Capital, and 21Shares to launch spot Solana exchange-traded funds (ETFs) have boosted investor confidence in the token.

These filings position the token for institutional adoption, driving significant interest.

DeFi Growth and Meme Coins Launch Drive Demand

A notable factor in the token’s rally is the resurgence of decentralized finance (DeFi) on the Solana blockchain. According to DefiLlama, the Solana network’s total value locked in DeFi has grown by over 500% this year, reaching $8.8 billion.

This rapid expansion reflects the blockchain’s ability to attract projects and users due to its scalability and low transaction costs. All the blockchain’s top decentralized finance (DeFi) platforms have recorded gains, with daily increases ranging from 3.90% to 11.50%.

Moreover, Binance-staked SOL (BNSOL) soared by 333% over the past month. Market analysts point to the renewed interest in speculative meme coins as another driver of demand for the Solana token.

The ease and affordability of minting such tokens on the Solana network have made it a hub for this activity, further amplifying its appeal.

Broader Market Optimism Fuels Rally

Bitcoin’s price surged by 5% on Thursday, reaching $98,988 and marking a record high for the fourth day. IntoTheBlock data reports a massive spike in the net flow of deposits and withdrawals among wallets holding a minimum of 19,000 BTC ($1.9 billion).

This increase in transaction flow has extended to other market participants, with Ethereum surging 8% to a peak at $3,412. Other altcoins have mirrored Solana price gains. XRP soared by 27% to $1.40, Cardano at $0.86, and Avalanche rose to $36.67.

Solana ETF Filings and Solana Price Surge

The submission of multiple spot Solana ETF filings on Nov. 21 marked a significant development in the cryptocurrency market. Fund managers VanEck, Bitwise, Canary Capital, and 21Shares lodged four separate 19b-4 filings with the Cboe BZX Exchange.

These applications aim to list spot Solana exchange-traded funds in the US, potentially marking a new chapter for the digital asset industry. These filings coincided with SEC Chair Gary Gensler confirming his resignation effective January.

This timing has sparked optimism for a shift in crypto regulations once a new leadership is in place. The potential approval of these Solana ETFs would represent a milestone for alternative digital assets beyond Bitcoin.

Bitwise joined the Solana ETF race after registering a statutory trust in Delaware on Nov. 20. The next day, it followed up with an S-1 registration statement.

Canary Capital entered the scene with its submission on Oct. 30, after VanEck and 21Shares had already submitted their S-1 filings in June. The 19b-4 filings now inform the SEC of proposed rule changes to facilitate listing these ETFs.

SEC Leadership Changes Fuel Optimism

Industry experts suggest fresh SEC leadership could bring much-needed regulatory clarity to the US crypto scene. A representative from 21Shares expressed confidence that Solana’s token, SOL, qualifies as a commodity and not a security.

The sentiment aligns with recent legal decisions, strengthening the case for its inclusion in an ETF. This optimism extends to the broader market, with some anticipating additional ETF filings for other assets like XRP and Litecoin.

Despite Solana’s strong price performance, analysts project that investor inflows into spot Solana ETFs may not reach the scale seen with Bitcoin and Ether ETFs.