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Solana (SOL) has recorded a brand new all-time excessive (ATH) of $262, marking a historic restoration after three years of tumultuous worth motion. Notably, the token had as soon as fallen as little as $8 on the peak of the FTX trade collapse and the following crypto bear market.
Solana Makes Historic Restoration, Eyes USDT Flippening
Solana (SOL), the much-touted “Ethereum killer,” is once more within the highlight. After dominating the 2020-21 crypto bull market, the digital asset noticed its worth plummet after FTX’s spectacular collapse, led by Sam Bankman-Fried. Nevertheless, SOL has staged a powerful comeback over the past two years.
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On the time of writing, SOL is the fourth-largest cryptocurrency, with a reported market cap of over $123 billion. The layer-1 blockchain’s market cap is simply $8 billion shy of overtaking stablecoin Tether’s (USDT) market cap of $130 billion.
Notably, SOL wants an additional 10% worth appreciation to decisively improve USDT’s market cap and change into the third-largest digital asset by market cap. SOL will solely path Bitcoin (BTC) and Ethereum (ETH) because the third-largest cryptocurrency.
Given the token’s current worth trajectory, it received’t be stunning to see SOL surging previous the main stablecoin’s market cap earlier than the top of the 12 months. Within the final three weeks alone, the token has skilled a outstanding 75% surge, rising from $148 on November 4 to $259 on the time of writing.
Whereas the broader crypto market has gained momentum following the victory of pro-crypto Republican US presidential candidate Donald Trump, attributing SOL’s rise solely to this might be disingenuous.
Memecoin Frenzy, Elevated Community Exercise, ETF Potential Helped SOL
SOL’s outstanding turnaround might be linked to a number of elements which have spurred elevated community adoption. One of the outstanding contributors is the continuing memecoin frenzy, which has emerged as a dominant narrative within the crypto market.
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Memecoins – significantly these primarily based on the Solana blockchain – have emerged because the crypto market’s prime narrative over the past 12 months. In October alone, the overall market cap of Solana-based memecoins surpassed $10 billion.
This memecoin craze has additionally translated into heightened community exercise for Solana. Between September and October, Solana noticed a 42% month-over-month (MoM) improve in lively addresses, amounting to roughly 123 million.
Apart from benefitting from the memecoin narrative, Solana has additionally seen elevated decentralized finance (DeFi) exercise all year long. In accordance with DefiLlama information, Solana is residence to the second-largest DeFi ecosystem on the planet, with a complete worth locked (TVL) of $9.265 billion.
As well as, there are rising prospects for a Solana-based exchange-traded fund (ETF). A current report signifies that the US Securities and Alternate Fee (SEC) is holding lively talks with a number of asset managers relating to the potential launch of a brand new spot Solana ETF.
Whereas SOL’s achievement of a brand new ATH is spectacular, specialists consider the token nonetheless has vital development potential. On the time of writing, SOL trades at $259, up 6.2% over the previous 24 hours.
Featured picture from Unsplash, charts from DefiLlama.com and Tradingview.com
