On Friday (22nd), Solana (SOL) surged to a new all-time high (ATH) of approximately $261. This breakthrough surpasses its previous peak set in November 2021.
The altcoin’s rally to a new ATH represents an increase of over 32 times compared to its price in December 2022.
Solana Achieves Historic Record Amid Gary Gensler’s Planned Resignation
SOL’s journey to this new milestone was far from easy. After reaching its previous high in 2021, the altcoin faced a downturn in 2022 amid a broader crypto winter and recurring technical issues, including network outages.
The collapse of FTX in November 2022 further pushed Solana’s price down to around $8.
Solana’s Remarkable Recovery
Despite these challenges, Solana has staged a remarkable recovery. Enthusiasts now speculate that SOL could eventually surpass Ethereum (ETH) in market capitalization.
"Solana has been at an all-time high in terms of market cap for some time. Now, we’re finally seeing price discovery. The turnaround is coming," said Birch, founder of PathCrypto.
Is a Solana ETF on the Horizon?
The surge in market value coincides with news of SEC Chair Gary Gensler’s planned resignation, expected on January 20, 2025, coinciding with Donald Trump’s inauguration.
Known for his stringent regulatory stance on cryptocurrencies, Gensler’s departure signals a potential shift toward a more crypto-friendly administration. This political change has fueled speculation about the approval of a Solana exchange-traded fund (ETF).
SEC Engages with ETF Issuers
According to Fox Business journalist Eleanor Terrett, the SEC has begun discussions with issuers to explore the possibility of a SOL ETF.
"Talks between the SEC’s team and issuers seeking to launch a Solana ETF are 'progressing,' with the SEC now reviewing S-1 applications. The recent engagement, coupled with the upcoming pro-crypto administration, is reigniting optimism that a Solana ETF could be approved sometime in 2025," Terrett stated.
Regulatory Hurdles and Renewed Hope
Previous attempts to launch a Solana ETF were stalled by regulatory barriers. However, the shifting political landscape and the SEC’s increased openness have revived hopes within the crypto community. Recent filings for a Solana ETF by Canary Capital and BitWise reflect growing anticipation for regulatory approval.
👉 Learn more about Solana’s potential
Low Approval Odds for 2024
Despite these developments, the likelihood of a Solana ETF approval in 2024 remains low, with Polymarket estimates placing it at around 4%. However, the positive dialogue and favorable market sentiment could mark significant milestones for crypto integration into mainstream financial products.
FAQs About Solana’s All-Time High and ETF Prospects
1. What caused Solana’s recent price surge?
Solana’s price surge is attributed to broader market recovery, anticipation of regulatory changes under a new SEC administration, and growing interest in a potential Solana ETF.
2. How does Gary Gensler’s resignation impact Solana?
Gensler’s resignation could lead to a more crypto-friendly regulatory environment, increasing the chances of approvals for crypto-based financial products like a Solana ETF.
3. What are the chances of a Solana ETF being approved in 2024?
Current estimates suggest a 4% chance, but optimism is growing for a potential approval in 2025.
4. How does Solana’s recovery compare to its 2022 lows?
Solana has rebounded by over 32 times since its December 2022 low of $8, showcasing its resilience and market confidence.
5. Which firms are leading the charge for a Solana ETF?
Canary Capital and BitWise are among the firms actively pursuing a Solana ETF, filing applications with the SEC.
6. What challenges does Solana still face?
Technical issues like network outages and regulatory uncertainty remain key challenges for Solana’s long-term growth.
Disclaimer: All information on our site is published in good faith for general informational purposes. Readers should conduct their own research before making any investment decisions.
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