Solana (SOL), the fourth largest cryptocurrency by market capitalization, has broken the $200 mark for the first time in seven months. This happened shortly after Bitcoin hit a new all-time high.
Solana in the elevator
According to data from Newsbit, SOL is currently trading at $200, up about 7% in the last 24 hours. This makes Solana one of the biggest winners of the week within the top 20 cryptocurrencies based on market capitalization. The currency rose as much as 18% in seven days.
By comparison, Bitcoin rose 9% this week and is currently trading at $76,250. This is slightly lower than the new record price of $76,872 reached on Thursday. The largest cryptocurrency broke its old record of $73,737 on Election Day earlier this week, as Donald Trump appeared on track for a second term as president.
Although Solana is now performing strongly, the coin is still around 23% below its all-time high price of $260, which was reached in November 2021.
What is Solana?
Solana is a so-called layer-1 blockchain network used for launching tokens and building decentralized applications (dApps) ranging from games to decentralized finance (DeFi) platforms. The network’s native currency, SOL, is used by supporters of the network and to pay transaction fees.
Factors behind the increase
Solana’s recent rise is partly attributed to Bitcoin’s new all-time highs coupled with Donald Trump’s re-election. The former president of the United States, who returns to the White House in January 2025, has repeatedly pledged to support the digital assets industry. This has led to a wave of investments in crypto tokens and exchange-traded funds (ETFs).
However, Solana is outperforming Bitcoin and many other top cryptocurrencies thanks to growing confidence that spot Solana ETFs will gain approval under the new Trump administration. Under President Joe Biden’s administration, Solana was still designated as an unregistered security by the US Securities and Exchange Commission (SEC), which caused uncertainty.
Conclusion
The combination of Solana’s strong technical fundamentals and the changing political dynamics in the United States is generating renewed confidence in the currency. However, whether the $200 mark will hold and Solana will reach new heights remains to be seen.
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Source: https://newsbit.nl/solana-koers-stijgt-naar-200-terwijl-bitcoin-een-nieuw-record-bereikt/
