Solana Surges 17%, Overtakes BNB as Trump’s Lead Boosts Hopes for SOL ETF Approval

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As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed countless market fluctuations and trends that seemed unpredictable at first glance but eventually made perfect sense in retrospect. The recent surge in Solana’s SOL token is no exception to this rule.

Solana’s SOL token is experiencing a significant boost, with its value increasing by more than 17% within the past 24 hours. This surge has propelled it past BNB Chain’s BNB to claim the position of the fourth-largest cryptocurrency by market capitalization.

Significantly, this increase in value appears to mirror trends in the broader cryptocurrency market. Specifically, many investors are optimistic about potential crypto-friendly policies under former U.S. President Donald Trump’s leadership if he wins the election. Furthermore, there is speculation that a Trump victory could expedite the approval of an exchange-traded fund (ETF) based on Solana.

Investors Eye Solana ETF in 2025 as Market Reacts to Trump’s Potential Crypto-Friendly Policies

For quite some time now, market analysts have expressed the viewpoint that if Trump wins the presidency again, it could result in regulatory adjustments favorable to digital assets. The general consensus is that a second Trump administration would likely be supportive of cryptocurrencies, potentially expediting the launch of Solana’s ETF as early as 2025.

According to a recent post by Daniel Cheung, co-founder of Syncracy Capital, he believes that the upcoming Republican sweep could have greater impacts on the cryptocurrency sector than initially thought. Here’s an excerpt from his post:

“SOL ETF likely happens in Q1 2025 putting SOL in a position to flip ETH and even trade at $1000.”

Investor excitement seems to be building around Cheung’s predictions, which could potentially contribute to the significant market increases seen recently.

The hint of a Solana ETF’s approval appeared when Cboe submitted regulatory documents to the Securities and Exchange Commission (SEC) in July. As we previously reported by Coinspeaker, Cboe aimed to list potential Solana ETFs from VanEck and 21Shares.

As a researcher, I found myself taking note of Rennick Palley’s observation at the time. Being a founding partner at the Stratos crypto fund, his perspective carried significant weight. He expressed belief that Solana, among other tokens, seemed particularly promising as the next significant one to secure Exchange-Traded Fund (ETF) approval.

Given the growing likelihood that a Trump-led government may consider Solana (SOL) as a token rather than a security, an immediate approval for a SOL Exchange Traded Fund (ETF) seems increasingly possible.

Price Action

In the last 24 hours, Solana’s trading volume soared to a massive $8.8 billion, marking a substantial increase from the previous day’s figure of $3.2 billion. Additionally, data from Coingecko indicates that its market capitalization has skyrocketed beyond $85 billion as the value of SOL exceeded $185.

Currently, Solana has surged to the fourth-largest cryptocurrency spot, trailing only Bitcoin ($74,436), Ethereum ($2,637), and Tether (USDT $1.00). The 24-hour volatility for these cryptos is around 8%, while their respective market caps stand at $1.47 trillion, $317.43 billion, and $120.59 billion. The 24-hour trading volumes are $115.80 billion, $38.93 billion, and $112.16 billion for Solana, Ethereum, and Tether respectively.

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2024-11-06 14:45