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On Friday, Solana (SOL) soared to a new record high, currently trading at around $261. This breakthrough milestone surpasses the previous peak set in November 2021.
Solana’s climb to new highs reflects a more than 32-fold increase from the lows recorded in December 2022.
Solana Hits Record High as Gary Gensler Expects to Leave
Solana’s road to this new peak was not smooth. After peaking in 2021, the platform faced a decline in 2022 amid a broader crypto bear market, along with technical issues and downtime of network.
FTX’s collapse in November 2022 pushed Solana’s price down to around $8.
However, Solana has recovered strongly, increasing more than 32 times from the lows. Currently, Solana supporters believe that SOL could surpass Ethereum (ETH) in market capitalization.
“Solana has been at an all-time high by market capitalization for a while actually. Currently, we are in the process of price discovery. The reversal is coming,” said Birch, founder of PathCrypto. speak.
Solana’s increase in value coincides with news of SEC Chairman Gary Gensler’s planned resignation, which is expected to take place on January 20, 2025, when Donald Trump takes office.
Known for his strict regulatory stance on cryptocurrencies, Gensler’s departure signals the possibility of a more crypto-friendly administration. This political change sparked speculation about Solana’s exchange-traded fund (ETF) approval. According to Fox Business journalist Eleanor Terrett, the SEC has begun contacting issuers to explore the possibility of establishing a Solana ETF.
“Negotiations between the SEC staff and issuers seeking to launch a point Solana ETF are ‘progressing’ with the SEC now participating in the S-1 applications. Recent engagement from employees, coupled with the incoming crypto-friendly administration, is sparking a renewed sense of optimism that a Solana ETF could be approved in 2025,” said Terrett. declare.
Previous efforts to establish a Solana ETF have been hampered by regulatory hurdles, often stopping early in the process. However, the change in the political environment and the SEC’s increased openness have sparked hope in the crypto community. Recent filings for a Solana ETF by Canary Capital and BitWise reflect growing interest and expectations for regulatory approval.
Despite these encouraging developments, the likelihood of approval of a Solana ETF in 2024 remains low, with Polymarket estimates placing it at around 4%.
Meanwhile, the cryptocurrency community is also closely watching Bitcoin as it approaches the highly anticipated $100k mark. On Friday, Bitcoin hit a new high around $99,300. This milestone is considered a pivotal moment for Bitcoin and could affect other cryptocurrencies, including Solana.
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