Solana Hits 3-Year Peak as Bitcoin's Record High Fuels Post-Trump Crypto Rally
After Donald Trump's presidential triumph, Bitcoin's record-breaking climb fuelled a wide crypto rally, sending Solana's SOL to a three-year high on Sunday.
SOL reached $214 early Sunday before settling at $209.88 by 10:38 pm ET. Bitcoin hit $81,000, a record. This rise followed Trump's win, raising market hopes of less regulations. BTC has doubled from January's $38,505 annual low.
The week's advances put SOL in the select club of cryptocurrencies with a $100b market valuation. Despite its brief market history, it currently competes with Bitcoin, Ethereum's ether, and Tether.
Validator profits now exceed $30m daily, boosting Solana's value. Recent network transaction processing and incentive system advancements are driving this increase.
In December 2021, Solana touched $214 after peaking at $260 the month before and declining. As the crypto market cooled, the crypto fell sharply in early 2022 and again in spring.
The November 2022 FTX bankruptcy hurt Solana owing to its ties to the exchange and its founder, Sam Bankman-Fried.
Mixed Future Forecasts
Due to its focus on quick transaction processing and scalability above network resilience, Solana faces frequent outages. Its unusual architecture, which uses Proof of History for efficient time-stamping and transaction sequencing, offers great performance but might generate operational challenges.
Some believe Solana's pricing trends will improve, while others disagree. Benjamin Cowen doubts Solana's velocity compared to Bitcoin in 2024.
Cowen expects the Solana-to-Bitcoin conversion rate to fall in November and December before recovering early next year. The optimistic USD estimates for Solana contrast with this cautious assessment.
