Solana (CRYPTO: SOL) reached a new all-time high on Friday morning, trading at $264.31 on Coinbase Inc. (NASDAQ:COIN), according to TradingView.
This comes two years after the collapse of the crypto exchange FTX, which had sent Solana prices plummeting.
What Happened: The token gained 18% over the past week, continuing its strong performance in 2024 with a 160% rise since the start of the year.
The collapse of Sam Bankman-Fried's FTX in late 2022 had pushed Solana to a cycle low of just under $10.
However, the layer-1 blockchain has made a remarkable recovery, driven by several factors, including new exchange-traded fund (ETF) filings for Solana-based products.
Recent filings from Bitwise, VanEck, 21Shares and Canary Capital to launch spot Solana ETFs have added significant momentum to the asset.
Market analysts are optimistic about Solana's continued rise, setting a price target of $400 now that it has surpassed its previous all-time high of $260.
SOL's popularity in the current cycle has been fueled by memecoin speculation, as its network provides a cost-effective and efficient platform for minting such tokens.
Beyond meme coins, decentralized finance (DeFi) activity on Solana has seen explosive growth.
The total value locked (TVL) on the Solana network has surged more than 500% in 2024, reaching $8.8 billion, according to DefiLlama.
Also Read: Charles Schwab Prepares For Spot Cryptocurrency Trading Under New Leadership
Why It Matters: The broader cryptocurrency market has also played a pivotal role in Solana's rally.
Optimism about friendlier crypto regulations under President-elect Donald Trump has driven overall market enthusiasm.
The total crypto market capitalization hit an all-time high of $3.42 trillion on November 22.
Additionally, the announcement of SEC Chair Gary Gensler's resignation in January has sparked further confidence in the altcoin market.
Gensler, known for his stringent stance on cryptocurrencies, had classified nearly all crypto assets other than Bitcoin as securities during his tenure.
His impending departure has fueled speculation about a more favorable regulatory environment for digital assets.
Solana is not the only altcoin benefiting from the current market momentum. XRP surged by 27% to $1.40 during early trading on Nov. 22, while Cardano (CRYPTO: ADA) and Avalanche (CRYPTO: AVAX) also posted double-digit gains, reflecting broad-based strength in the altcoin market.
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