Solana (SOL), now the fourth-largest cryptocurrency by market capitalization, has broken the $200 mark for the first time since April. This rise coincided with a broader rally in the cryptocurrency market following Donald Trump’s recent victory in the U.S. presidential election, which has rekindled optimism among crypto investors.
According to TradingView, SOL’s price has increased by 7.5% within a day and surged 21.1% over the past week, bringing its market capitalization to approximately $95 billion. Early Friday, SOL reached a peak price of $202.55, a level last seen on April 1, 2024. During that period, the popularity of Solana’s “killer app,” Pump.fun, was beginning to drive substantial engagement in the network.
The Impact of Pump.fun on Solana’s Network
The launch of Pump.fun, a popular token launchpad, has been instrumental in fueling Solana’s recent growth. This platform allows users to create and trade meme coins, a category of cryptocurrency tokens often associated with internet culture and social media-driven trading trends. Since April, Pump.fun has evolved from launching around 10,000 tokens daily to over 32,000 tokens on Thursday alone. Data from the analytics platform Dune indicates that the protocol has surpassed a lifetime total of 3 million coins deployed, illustrating the explosive popularity of this meme-coin launchpad on Solana’s network.
The U.S. election results have provided additional momentum for Pump.fun and the broader crypto market. With Trump’s reputation as a pro-crypto candidate, his victory has encouraged traders to anticipate more favorable regulatory conditions and less governmental resistance toward digital assets.
Trump’s Stance on Crypto and Market Optimism
Throughout his campaign, Trump has made several promises aimed at reducing regulatory hurdles for the crypto industry. His campaign rhetoric included commitments to end strict regulations on crypto, improve blockchain technology adoption, and even propose measures to increase government holdings in digital assets like Bitcoin. These pro-crypto stances have made Trump a popular figure among crypto traders, some of whom humorously rely on Pump.fun dashboards to track election-related market reactions.
The enthusiasm surrounding Trump’s policy proposals has not only invigorated meme-coin trading but also renewed calls for a Solana-focused Exchange Traded Fund (ETF). Balaji Srihari, Business Head at CoinSwitch, speculates that the SEC may be more receptive to a Solana ETF in a regulatory environment supportive of cryptocurrency innovation.
Potential Solana ETF: New Investment Channels?
An ETF, or Exchange Traded Fund, provides traditional investors with a secure, regulated way to invest in digital assets. This year, Bitcoin and Ethereum both received approval for ETFs, opening up new channels for billions of dollars in investment from institutional and retail investors alike. A Solana ETF would extend similar opportunities to Solana, offering mainstream investors access to the asset through the same type of investment vehicle.
Solana’s recent price surge reflects both the increased demand within the crypto space and the renewed optimism among investors. With the potential for a Solana ETF on the horizon and a favorable political climate emerging, the network appears positioned to sustain its growth in the coming months.
