SOL Surges Past $220 Mark, Sets Sights on All-Time High
This is a segment from the Lightspeed newsletter.
Market Update for SOL Holders
Donald Trump’s victory in the US presidential election led to a rally in the crypto market. SOL reached a nearly three-year high, surpassing $220 for the first time since December 2021, with a market capitalization exceeding $104 billion according to CoinGecko data.
During this period, ETH experienced a larger increase of about 26%, while SOL rose by 18% and Bitcoin increased by 13% following Trump's announcement.
Impact of Election on Crypto Regulatory Landscape
The election outcome was anticipated as a catalyst for SOL's performance. The SEC, under Gary Gensler, has maintained a stringent stance on crypto regulation, leading to speculation that Trump’s administration would adopt a more favorable approach for the industry.
Solana aims to position itself among the top three crypto assets alongside Bitcoin and Ether. The SEC has approved spot Bitcoin and Ether ETFs, categorizing them as commodities, which allows their trading without strict securities regulations. In contrast, SOL is currently classified as a security in an ongoing lawsuit against Coinbase.
Risks and Opportunities for SOL
A formal declaration of SOL as a security could limit its trading capabilities in the US, where approximately 60% of global equity markets operate. Jacob Laufer from M^0 highlighted the potential resolution of SOL's legal status and pending spot SOL ETF approvals as positive developments for Solana.
With a more accommodating regulatory environment, SOL may attract institutional interest in addition to its existing retail interest. Solana remains a leading platform for memecoin trading, with daily trading fees on the launchpad pump.fun exceeding $1 million since October 13.
Future Price Projections
Currently priced around $220, traders are eyeing a target of $260, which aligns with SOL’s all-time high from November 2021. An analyst from Standard Chartered suggested that reaching a new peak for SOL by year-end is "inevitable."