Solana (SOL) Price Surges Past $200 as Fed Rate Cut Triggers Crypto Market Rally

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As an experienced analyst with over two decades of watching the crypto market unfold, I find myself constantly impressed by the rapid-fire evolution of this nascent industry. Today, I am particularly intrigued by Solana’s (SOL) recent surge past the $200 mark and its continued outperformance against heavyweights like Bitcoin and Ethereum.

Solana (SOL), a competitor to Ethereum Layer 1, is once again attracting attention as it has increased by 6.59% today, breaking through the significant resistance of $200. This surge further widens its advantage over Binance Coin (BNB)

On Thursday, November 7th, it was revealed that the U.S. Federal Reserve reduced interest rates by a quarter of a percentage point. Moreover, the U.S. Central Bank reported that the American economy is growing quickly and the job market is showing signs of relaxation.

Following its introduction, the S&P 500 saw a 0.7% increase on Thursday, with the Nasdaq Composite rising by 1.5%, reaching new record closing highs. This growth is part of the ongoing post-election surge in US stock markets. Meanwhile, Bitcoin has also hit a fresh all-time high of $76,943 today, marking a 2% increase. The crypto market rally is not limited to Bitcoin as Ethereum’s price is also nearing $3,000. Min Jung, research analyst at Presto Research, commented on this trend.

The current surge in the cryptocurrency market is largely attributed to President Trump’s election win, suggesting a possible administration that may be more supportive of cryptocurrencies. Furthermore, anticipation surrounding the Federal Open Market Committee’s decisions has also contributed to this trend, pushing stock markets to record highs.

According to Jung’s analysis, Solana has consistently excelled due to robust meme coin activity. At certain instances, this activity caused Solana’s transaction fees to surpass Ethereum’s levels. This boost not only in Solana itself but also the broader Solana ecosystem, encompassing decentralized exchanges like Raydium.

Solana Hits New Milestones, SOL Price Rally to Continue?

In October’s final stretch, Solana significantly outperformed Bitcoin and nearly all other top-tier cryptocurrencies. This was accompanied by a record high of monthly active addresses on its blockchain, surpassing 123 million. A significant factor driving network activity has been the increase in DEX volumes due to the surge in pump.fun tokens.

As Donald Trump prepares to return to the White House in January 2025, there’s an increasing optimism surrounding the potential approval of the Solana ETF. This is due to speculation that the Trump administration may appoint a successor to SEC Chair Gary Gensler who is more favorable towards cryptocurrencies.

Jung stated that there’s definitely a hint of optimism influencing Solana’s price due to potential ETF approval, but since this event is yet to materialize, it hasn’t had a significant effect on the current market value.

Compare: ETH versus SOL in the same timeframe – A Trader’s View

— Peter Brandt (@PeterLBrandt) November 7, 2024

Experienced trader Peter Brandt appears to have a stronger positive outlook for Solana compared to Ethereum at present. As the price of Solana (SOL) approaches a possible surge beyond $200, which could further propel it to reach an all-time high of $260, it will be intriguing to observe whether the bulls can maintain their position above the $200 resistance level once more.

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2024-11-08 12:15