In summary
- Solana, the fourth-largest Cryptocurrency by market cap, surpassed $200 for the first time since April.
- Solana (SOL) rose 7.5% on the day and 21.1% in the last week, reaching a market capitalization of \$95 billion.
- This previous high was reached before the network’s flagship app, Pump.fun, unleashed the memecoin craze.
Solana, the fourth-largest cryptocurrency by market capitalization, has surpassed $200 for the first time since April. This comes after Donald Trump won the US presidential election triggering green candles across cryptocurrency markets and driving the SOL trenches into overload.
Solana (SOL) is up 7.5% on the day and 21.1% over the past week, according to CoinGecko, to a market cap of $95 billion. Early on Friday, the token hit a price of $202.55, the highest since April 1, 2024.
This previous high was reached before the network’s flagship app, Pump.fun, sparked the start of the memecoin craze. In April, Pump.fun, the most popular token launch platform in cryptocurrency, was responsible for creating only 10,000 tokens a day. Since then, the meme coin factory has hosted a number of celebrity tokens, outrageous live streams, as well as an innovative “multi-million dollar coin” conceived by artificial intelligence.
Now that Solana has hit its April high, the Pump.fun trenches are also showing signs of good health. On Thursday alone, 32,000 tokens were released, according to Dune dashboard data. And just this week, the protocol surpassed 3 million coins deployed in its entire existence.
This memecoin euphoria was largely motivated by the US presidential election and continued by the belief that pro-crypto candidate Donald Trump would win the election. It became a running joke among meme coin traders that they got their election news from the launch dashboard and that a Trump victory would be great for everyone’s wallets.
During his campaign, Trump welcomed cryptocurrencies with open arms, winning over much of the industry. He promised to end the “illegal and un-American cryptocurrency crackdown,” create friendlier regulation, and encourage the government to stockpile Bitcoin. These cryptocurrency-related proposals are the reason why the entire industry is experiencing a boom following his victory.
With this, optimism for a Solana ETF has grown. Head of Business at CoinSwitch, Balaji Srihari, told Decrypt on Thursday that we could see a more flexible stance from the SEC on Solana, potentially opening the door to an ETF.
An ETF (Exchange Traded Fund) is a publicly traded investment vehicle that tracks the value of its underlying asset. At the beginning of the year, both Bitcoin and Ethereum had ETFs approved in the US with billions of dollars flowing through them. For example, the iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF, has more than $17 billion in assets under management.
This type of investment vehicle opens the door to traditional investors, those who have typically shied away from cryptocurrencies due to their speculative nature and high barrier to entry. Additionally, a Solana ETF would promote the injection of potentially billions of dollars from this type of everyday investor.
Edited by Stacy Elliott.
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