Solana (SOL) price has surged past the $200 mark benefiting from recent Federal Reserve rate cuts and broader market optimism after Trump’s election win.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Ethereum Layer 1 competitor Solana SOL $134.8 24h volatility: 8.0% Market cap: $68.62 B Vol. 24h: $3.65 B is once again in the limelight surging by another 6.59% today and shooting past the crucial resistance of $200. With this, SOL extends its lead over the BNB coin BNB $593.4 24h volatility: 1.5% Market cap: $86.58 B Vol. 24h: $865.11 M after surpassing it for the fifth spot earlier this week.
This development comes as the US Federal Reserve announced a 25 basis points rate cut on Thursday, November 7. Also, the US Central Bank stated that the US economy has continued to expand at a rapid pace while the labor market conditions have eased.
Soon after the development, the S&P 500 climbed 0.7% on Thursday, while the Nasdaq Composite gained 1.5%, both reaching record closing highs as US stock markets continued their post-election rally. Similarly, the Bitcoin price has also hit a new all-time high of $76,943 earlier today by gaining an additional 2%. Altcoins are also contributing to the crypto market rally with the Ethereum ETH $1 921 24h volatility: 1.5% Market cap: $231.66 B Vol. 24h: $12.32 B price approaching $3,000. Speaking on the development, Min Jung, research analyst of Presto Research, said:
“The recent [crypto] market rally is driven by Trump’s election victory, signaling a potentially more crypto-friendly administration, along with expected FOMC results, which have pushed stocks to all-time highs”.
Jung noted that Solana had been a standout performer, “driven by strong meme coin activity that has, at times, pushed its transaction fees above Ethereum’s,” which has “bolstered the broader Solana ecosystem, including decentralized exchanges like Raydium”.
During the last month of October, Solana outperformed Bitcoin BTC $84 430 24h volatility: 3.1% Market cap: $1.67 T Vol. 24h: $30.04 B and almost all of the cryptocurrencies from the top league. The blockchain also saw the highest number of monthly active addresses, surging past 123 million. One of the major divers of the Solana network activity has been the rising DEX volumes due to the surge in pump.fun tokens.
Now with Donald Trump resuming office from January 2025, there’s a growing hope regarding the approval of the spot Solana ETF. This is because the Trump administration is likely to replace SEC Chair Gary Gensler with a more crypto-friendly chief.
“There is certainly an element of hope that is pushing up Solana price which includes a possible ETF approval, however, the timeline is still too far away to have a meaningful impact on the current price,” Jung added.
$ETHUSD vs. $SOLUSD (same period)
A trader's perspective
Both are poised for upside BOs to join Bitcoin
But notice, SOL breaking out into new highs
ETH chewing into overhead resistance (supply)
I always favor new highs and prefer SOL
Only those supporting @elonmusk can reply pic.twitter.com/rzQCZOjP9c— Peter Brandt (@PeterLBrandt) November 7, 2024
Veteran trader Peter Brandt is more bullish on Solana than on Ethereum shortly. This is just as the SOL price eyes a potential breakout above $200 to continue its rally to an all-time of $260. It will be interesting to see whether the bulls are able to hold above the $200 resistance once again.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
