The cryptocurrency market has been in a state of frenzy following Donald Trump’s recent confirmation as the 47th President of the United States, with Bitcoin nearing the astonishing $90,000 mark. But the altcoin Solana is quietly stealing the spotlight, delivering returns of over 36% in just the last week. As the fourth largest token, Solana holds a colossal market cap of $102.5 billion and, with its recent rally, has seen its price soar past the $200 mark, hinting at further potential increases.
Solana’s price surge is not merely a byproduct of the current bullish market sentiment. There are other factors at play. Launched in 2020, Solana utilizes a proof-of-stake protocol, a method that Ethereum, the second largest cryptocurrency, only recently switched to. Designed to host decentralized applications, the Solana blockchain has attracted considerable attention in the crypto world due to its efficiency, earning it the moniker of “Ethereum killer.”
Despite being only a quarter the size of Ethereum, the only cryptocurrency that outpaces Solana is Tether, a stablecoin. This puts Solana in a commanding position among the most influential cryptocurrencies in the market.
The recent crypto rally can be partly attributed to President-elect Trump’s endorsement of cryptocurrencies. Throughout his campaign, Trump attended several Bitcoin conferences and declared his intention to be the first “Bitcoin President.” This endorsement has the crypto industry abuzz with anticipation of deregulation over the next four years. Expectations are also high for the replacement of the Securities and Exchange Commission’s Chair, Gary Gensler, who has had several high-profile confrontations with crypto companies.
Further bolstering Solana’s prospects is the potential US listing of a spot Solana exchange-traded fund (ETF). In July, Cboe Global Markets officially requested the SEC to allow the listing of Solana ETFs by two issuers, VanEck and 21Shares, both of whom submitted S-1 forms with the regulator. Although the SEC has not yet acted on this request, a Trump-appointed, crypto-friendly SEC chief replacing Gensler may well approve the instrument.
It’s worth noting that the SEC gave the green light to the listing and trading of spot Bitcoin ETFs on US exchanges last January, followed by approval for Ether ETFs. While such ETFs are already traded on the stock exchanges of several other countries, the US listing has given a significant boost due to the sheer size of the market.
In this dynamic environment, it is clear that Solana has carved out a significant place for itself. Whether it can continue to ride the wave of deregulation and positive market sentiment remains to be seen, but at the moment, the future looks bright for this “Ethereum killer.”
