Solana's market capitalization soared to an unprecedented peak late Friday, exceeding $82 billion according to [CoinGecko](https://www.coingecko.com/en/coins/solana) data. Though it has since settled around $80.5 billion, this still surpasses its previous 2021 highs, marking a significant milestone for the blockchain network.
Current SOL Price Performance
While Solana's native token, SOL, trades at $181—a 9% daily and 21% weekly gain—it remains below its November 2021 all-time high of $259.96. This discrepancy arises from an increased circulating supply, which has propelled the total market cap to new records despite the lower individual token price.
SOL's recent performance highlights its resilience:
- Top 20 Ranking: Outperforming all major cryptocurrencies in the last 24 hours.
- Peak Price: Highest since December 2021, signaling renewed investor confidence.
The Resurgence of Solana
After facing severe setbacks due to its association with the collapsed FTX exchange, Solana has staged a remarkable comeback since November 2023. Key factors driving this revival include:
- Technical Advantages: Developers praise its speed and cost-efficiency compared to Ethereum.
- Enterprise Adoption: Partnerships with major players like Shopify and Visa.
- Meme Coin Frenzy: Low transaction fees attracted traders to tokens like BONK and Dogwifhat.
👉 Explore Solana's ecosystem and trading opportunities
Market Position and Future Outlook
SOL now ranks as the fifth-largest cryptocurrency by market cap. Its network has gained traction amid the broader crypto rally, fueled by the popularity of meme coins and increasing developer activity.
FAQs About Solana's Rally
Q: Why is Solana's market cap higher despite SOL not reaching its ATH?
A: The circulating supply has grown since 2021, increasing the total valuation even at lower per-token prices.
Q: What caused Solana's 2023 recovery?
A: A combination of technical upgrades, institutional interest, and retail meme coin trading reignited demand.
Q: How does Solana compare to Ethereum?
A: Solana offers faster transactions and lower fees, making it attractive for high-throughput applications.
Q: Are meme coins driving SOL's price?
A: Partially—while tokens like BONK boosted network activity, institutional adoption remains a core factor.
👉 Stay updated on Solana's latest developments
Final Thoughts
Solana's market cap milestone reflects its regained stature in the crypto space. With robust fundamentals and growing ecosystem diversity, SOL continues to be a blockchain to watch in 2024.