Solana’s (SOL) value has risen by over 30% in the past 48 hours, solidifying its position as the fifth-largest cryptocurrency by market capitalization. The significant price increase starkly contrasts the relative stagnation observed by other major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), which experienced minimal movement.
Solana’s ascent is not a mere speculation; it is rooted in the inherent strengths of its technological architecture. The network’s unique consensus mechanism, a hybrid of Proof of History and Proof of Stake, delivers unparalleled transaction speeds and remarkably low fees. Thus, the SOL token has more utility as millions of users launch their crypto tokens and transact on the network.
Trump Token Pushes SOL Upwards
Two days before his inauguration, U.S. President-elect Donald Trump announced the launch of Trump memecoin via X (formerly Twitter). Within 36 hours, it surged by over 1775% to move from $4.29 to $76 on Sunday, hitting a remarkable $70 billion market capitalization, demonstrating the power of his name and the memecoin market’s volatility.
My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC
— Donald J. Trump (@realDonaldTrump) January 18, 2025
Remarkably, the Trump coin was launched on the Solana network. Therefore, many investors interested in the memecoin migrated to the host network, increasing the demand for the network’s native token, SOL, which is needed for transaction fees and other charges related to acquiring the incoming president-minted token.
Banking on Trump’s pro-crypto stand, investors expect a better future for the newly launched token. However, following the sharp market drop on Monday, it had recorded a $42.8% decrease at press time.
Solana ETF Coming Approval a Game Changer
One of the most keenly anticipated outcomes of this administrative change in the U.S. is the potential approval of spot exchange-traded funds (ETFs) tracking the price of cryptocurrencies, particularly Solana (SOL).
The launch of spot BTC and Ether ETFs last year demonstrated substantial market interest and potential for growth within the ETF market. However, the Securities and Exchange Commission (SEC) is still hesitant to approve the SOL ETF applications submitted by many prominent financial institutions.
Meanwhile, the incoming president has pronounced support for SOL and revealed plans to add it to the country’s crypto reserve. Thus, the community expects filing approval in no distant time. Moreover, the U.S. SEC anti-crypto chairman will step down on Monday, January 20, 2024.
