Solana (SOL), which dropped to $8 after the FTX bankruptcy in November 2022, was virtually reborn after October 2023 and rose to $210 in March 2024.
SOL, which subsequently dropped to $116, recovered again and continues to be traded at $180.
Evaluating the reasons for the recovery in Solana, analysts stated that apart from increased transaction activities, the expectation of approval of a possible ETF due to the cryptocurrency-friendly approach of the Donald Trump administration and the loosening of regulatory policies supported the rise of SOL.
Speaking to Coindeks, Amberdata researcher Pat Doyle said, “The Solana ecosystem is showing strong growth, driven by increased DEX activity, increasing daily active users, and increasing fees to the network. These strong fundamentals, combined with positive market sentiment, are driving the SOL price higher.” said.
Rennick Palley, co-founder of crypto venture company Stratos, said that the loosening of regulatory policies supported the Solana price and increased SOL's attractiveness among professional investors.
“The recent rally in Solana is due to improving overall market sentiment and the increasing likelihood that the Trump administration will not consider cryptocurrencies and ecosystem tokens as securities, and the prospect of a possible Solana ETF approval.”
Palley also noted that the upcoming ETH ETF launch is also helping the SOL rally, adding, “SOL looks poised to be the next ETF token that will be extremely bullish given its relatively small size and strong price performance.”
Solana, which has increased by 18.5% in the last week and 4.6% in the last 24 hours, continues to be traded at $ 180.6.
*This is not investment advice.