Solana Hits 3-Year Peak as Bitcoin’s Record High Fuels Post-Trump Crypto Rally

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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November 10, 2024 23:17 EST

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Solana’s cryptocurrency SOL reached a three-year high on Sunday as Bitcoin’s record-breaking surge fueled a broad crypto rally after Donald Trump’s decisive election win.

SOL surged to $214 early Sunday before settling at $209.88 by 10:38 pm ET. Meanwhile, Bitcoin reached a new record, surpassing $81,000. This spike came in response to Trump’s election victory, sparking investor expectations of a more lenient regulatory environment. BTC has now more than doubled since its yearly low of $38,505 in January.

The week’s gains made SOL join the elite group of cryptocurrencies, boasting a market cap over $100b. Despite having a much shorter history in the market, it now stands shoulder to shoulder with Bitcoin, Ethereum’s ether and Tether (USDT).

Solana’s Validator Earnings Surge Past $30M, Fueling Value Growth Amid Network Upgrades

Further, Solana’s value has surged due to a significant rise in validator earnings, now surpassing $30m daily. This growth is driven by recent improvements in the network’s transaction processing and reward systems.

Solana last reached the $214 level in Dec. 2021, after peaking at around $260 the previous month and starting to decline. The crypto experienced a steep drop in early 2022, followed by another decline that spring as the crypto market cooled.

The situation deteriorated further with the FTX collapse in Nov. 2022, which impacted Solana significantly due to its connections with the exchange and its founder, Sam Bankman-Fried.

Mixed Future Predictions

Solana is known for its frequent downtime, stemming from its emphasis on fast transaction processing and scalability over network robustness. Its unique design, which includes using Proof of History for efficient time-stamping and transaction sequencing, enables high-speed performance but has sometimes caused operational issues.

While some are optimistic about Solana’s future price trends, not everyone agrees. Analyst Benjamin Cowen, for example, has shown doubt about Solana’s momentum compared to Bitcoin as 2024 ends.

Cowen predicts the Solana-to-Bitcoin exchange rate could decline in November and December, with recovery likely only early next year. This cautious view contrasts with the generally positive forecasts for Solana’s USD performance.