The Solana Cryptocurrency has Updated the Historical High of the Last Three Years. What is the Reason for the Growth?
The price of the SOL token rose by about 6 per cent from the previous all-time high.
The price of the SOL token rose about 6 per cent from its previous all-time high. The Solana (SOL) exchange rate reached its highest level in three years. On 18 November 2024, the price of SOL touched $244.89 for the first time since 15 November 2021, according to CoinMarketCap data. The all-time high for the coin's exchange rate was recorded three years ago, at $260.06. Currently, the cryptocurrency is about 6 per cent ($15) short of breaking the record.
Meanwhile, Solana's market capitalisation has reached an all-time high. On 18 November, it surpassed $114 billion, strengthening SOL's position as the fourth largest cryptocurrency by capitalisation. At the beginning of November, Solana overtook the BNB token of Binance (BNB), taking it to fifth place, and is now surpassed only by BTC, ETH and USDT.
Solana's market share reached a record 3.81%, according to TradingView data updated at 00:00. This share has more than doubled since the beginning of 2024.
Solana's growth in performance
Solana's growth has been fuelled by increased user activity in meme cryptocurrency trading. The volume of funds locked (total value locked, TVL) in the blockchain reached its highest level since 2021, exceeding $8.4 billion.
Raydium, the largest DEX platform in the Solana network, has distinguished itself as a leader in attracting capital into the ecosystem, with daily trading volume surpassing $4.1 billion in the past 24 hours. Thanks to user activity in meme coin trading, Raydium generated over $11.7 million in commissions in the last day, surpassing the entire Ethereum network.
One of the most popular meme tokens on Solana is Peanut the Squirrel (PNUT). The capitalisation of the coin, issued in honour of Peanut the Squirrel, has increased almost six-fold in a fortnight to $1.6 billion, while the price of PNUT has risen 2900%.
Hype on meme tokens and ETFs on Solana
In addition to the hype on meme tokens, Solana's price has also been influenced by news about exchange-traded funds (ETFs) based on the coin. In June this year, investment firm VanEck filed an application with the US Securities and Exchange Commission (SEC) to launch a spot Solana-ETF.
VanEck has positioned itself as one of the first management companies in the US to offer investors access to international markets, investing in gold, emerging markets and ETFs. According to company data, VanEck managed $118.3 billion as of 30 September.
Following Donald Trump's victory in the US presidential election, VanEck's head of digital asset research, Matthew Siegel, told the Financial Times that the SEC will now approve ETFs spot on Solana. Siegel predicts that they could be launched by the end of 2025.
Solana Pay's introduction and real-world adoption
The introduction of Solana Pay, a payment system designed for fast and secure peer-to-peer transactions, has caught the attention of businesses and developers. The ability to facilitate instant and convenient payments without intermediaries makes it attractive for global commerce.
Real-world adoption of Solana's technology has increased, with blockchain-based solutions being deployed in sectors such as gaming, e-commerce and financial services. These use cases demonstrate Solana's practical potential and fuel its long-term growth narrative.
Solana's problems
Despite its recent success, Solana still faces several issues that could negatively impact its future. In the past, the network has suffered several major outages, which have caused considerable concern about its scalability and reliability.
These outages, mainly due to network congestion and software bugs, raised doubts about Solana's ability to handle sustained growth and heavy usage. Furthermore, the centralisation of the network, with a significant part of the validation power concentrated in a few hands, is another critical point.
This is a serious flaw in an industry like cryptocurrency, which relies on decentralisation as a fundamental principle. Such problems could undermine user and investor confidence, jeopardising Solana's position in the long term.
If the network fails to effectively address these obstacles, it may not be able to maintain the pace of growth it has been experiencing recently.
The price of the SOL token rose about 6 per cent from its previous all-time high.
The Solana (SOL) exchange rate reached its highest level in three years. On 18 November 2024, the price of SOL touched $244.89 for the first time since 15 November 2021, according to CoinMarketCap data. The all-time high for the coin's exchange rate was recorded three years ago, at $260.06. Currently, the cryptocurrency is about 6 per cent ($15) short of breaking the record.
Meanwhile, Solana's market capitalisation has reached an all-time high. On 18 November, it surpassed $114 billion, strengthening SOL's position as the fourth largest cryptocurrency by capitalisation. At the beginning of November, Solana overtook the BNB token of Binance (BNB), taking it to fifth place, and is now surpassed only by BTC, ETH and USDT.
Solana's market share reached a record 3.81%, according to TradingView data updated at 00:00. This share has more than doubled since the beginning of 2024.
Solana's growth in performance
Solana's growth has been fuelled by increased user activity in meme cryptocurrency trading. The volume of funds locked (total value locked, TVL) in the blockchain reached its highest level since 2021, exceeding $8.4 billion.
Raydium, the largest DEX platform in the Solana network, has distinguished itself as a leader in attracting capital into the ecosystem, with daily trading volume surpassing $4.1 billion in the past 24 hours. Thanks to user activity in meme coin trading, Raydium generated over $11.7 million in commissions in the last day, surpassing the entire Ethereum network.
One of the most popular meme tokens on Solana is Peanut the Squirrel (PNUT). The capitalisation of the coin, issued in honour of Peanut the Squirrel, has increased almost six-fold in a fortnight to $1.6 billion, while the price of PNUT has risen 2900%.
Hype on meme tokens and ETFs on Solana
In addition to the hype on meme tokens, Solana's price has also been influenced by news about exchange-traded funds (ETFs) based on the coin. In June this year, investment firm VanEck filed an application with the US Securities and Exchange Commission (SEC) to launch a spot Solana-ETF.
VanEck has positioned itself as one of the first management companies in the US to offer investors access to international markets, investing in gold, emerging markets and ETFs. According to company data, VanEck managed $118.3 billion as of 30 September.
Following Donald Trump's victory in the US presidential election, VanEck's head of digital asset research, Matthew Siegel, told the Financial Times that the SEC will now approve ETFs spot on Solana. Siegel predicts that they could be launched by the end of 2025.
Solana Pay's introduction and real-world adoption
The introduction of Solana Pay, a payment system designed for fast and secure peer-to-peer transactions, has caught the attention of businesses and developers. The ability to facilitate instant and convenient payments without intermediaries makes it attractive for global commerce.
Real-world adoption of Solana's technology has increased, with blockchain-based solutions being deployed in sectors such as gaming, e-commerce and financial services. These use cases demonstrate Solana's practical potential and fuel its long-term growth narrative.
Solana's problems
Despite its recent success, Solana still faces several issues that could negatively impact its future. In the past, the network has suffered several major outages, which have caused considerable concern about its scalability and reliability.
These outages, mainly due to network congestion and software bugs, raised doubts about Solana's ability to handle sustained growth and heavy usage. Furthermore, the centralisation of the network, with a significant part of the validation power concentrated in a few hands, is another critical point.
This is a serious flaw in an industry like cryptocurrency, which relies on decentralisation as a fundamental principle. Such problems could undermine user and investor confidence, jeopardising Solana's position in the long term.
If the network fails to effectively address these obstacles, it may not be able to maintain the pace of growth it has been experiencing recently.
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