Solana Records New ATH After 3 Years: Is SOL Ready To Flip USDT?

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As a seasoned analyst with over two decades of experience in the ever-evolving world of finance and technology, I have witnessed countless ups and downs in the crypto market. Solana’s (SOL) recent surge to an all-time high (ATH) of $262 is nothing short of remarkable, especially considering its tumultuous journey over the past three years.

Solana’s (SOL) value has reached an unprecedented peak of $262, signifying a significant comeback following three years of volatile price fluctuations. Interestingly, this token plummeted to a low of $8 during the collapse of the FTX exchange and the subsequent crypto market downturn.

Solana Makes Historic Recovery, Eyes USDT Flippening

Once more drawing attention is Solana (SOL), often referred to as a potential competitor to Ethereum. After its significant rise during the 2020-21 cryptocurrency market surge, Solana’s value significantly dropped following the dramatic downfall of FTX, headed by Sam Bankman-Fried. Yet, over the past two years, SOL has made a strong recovery.

Currently, Solana (SOL) stands as the fourth-largest cryptocurrency by market capitalization, boasting a valuation exceeding $123 billion. Its market cap is only about $8 billion away from surpassing Tether’s (USDT) market cap of $130 billion, which could make Solana the new leader among stablecoins in terms of market value.

To significantly boost USDT’s market capitalization, SOL must rise by an additional 10%. This increase would place SOL as the third-biggest digital currency, with Bitcoin (BTC) and Ethereum (ETH) ranking first and second respectively in the crypto market.

Based on the current trend in SOL’s price movement, it’s not unforeseeable that SOL could exceed the market capitalization of leading stablecoins before year-end. In just the past three weeks, this token has shown a significant increase of 75%, rising from $148 on November 4 to its current value of $259.

Although the overall cryptocurrency market seems to have picked up speed due to the election of a pro-cryptocurrency Republican U.S. president, Donald Trump, it’s not entirely accurate to say that Solana’s (SOL) surge can be exclusively credited to this event.

Memecoin Frenzy, Increased Network Activity, ETF Potential Helped SOL

As a researcher examining SOL’s impressive transformation, I’ve found that multiple elements have fueled its growing network acceptance. Among these key factors, the persistent memecoin craze stands out as a significant driver. This trend has taken center stage, shaping the narrative within the cryptocurrency market at large.

Over the past year, meme coins, especially those built on the Solana blockchain, have become the dominant storyline in the crypto market. In just the month of October, the combined market value of these meme coins on the Solana network exceeded a whopping $10 billion.

The surge in popularity of meme coins has led to an uptick in network usage for Solana as well. Over the period between September and October, there was a noteworthy 42% rise in the number of active addresses on Solana, totaling around 123 million.

In addition to gaining traction from the meme coin trend, Solana has also experienced a surge in decentralized finance (DeFi) activity this year. Notably, data from DefiLlama indicates that Solana hosts one of the largest DeFi ecosystems globally, with a total value locked (TVL) of approximately $9.265 billion.

Furthermore, it’s worth noting that there are increasingly promising possibilities for an exchange-traded fund (ETF) built on the Solana platform. A recent report suggests that the U.S. Securities and Exchange Commission (SEC) is actively engaging with several asset managers about the potential debut of a new Solana ETF, focusing on the spot market.

Although Solana (SOL) recently reached a new all-time high, industry analysts suggest that there’s still plenty of room for the token to grow. At this moment, one SOL is being traded at approximately $259, representing a 6.2% increase over the previous day.

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2024-11-23 11:10