• Crypto & Funx
• 02 Jun, 2024

SOL’s performance is boosted by strong memecoin activity, occasionally surpassing Ethereum in transaction fees.

With SOL reaching record activity in October speculations of a spot Solana ETF under Trump administration are on the rise.

Analysts remain optimistic about a sustained rally, with potential price targets as high as $260 if the $200 support holds firm.

Ethereum Layer 1 competitor Solana is once again in the limelight surging by another 6.59% today and shooting past the crucial resistance of $200. With this, SOL extends its lead over the BNB coin after surpassing it for the fifth spot earlier this week.

This development comes as the US Federal Reserve announced a 25 basis points rate cut on Thursday, November 7. Also, the US Central Bank stated that the US economy has continued to expand at a rapid pace while the labor market conditions have eased.

Soon after the development, the climbed 0.7% on Thursday, while the Nasdaq Composite gained 1.5%, both reaching record closing highs as US stock markets continued their post-election rally. Similarly, the Bitcoin price has also hit a new all-time high of $76,943 earlier today by gaining an additional 2%. Altcoins are also contributing to the crypto market rally with the Ethereum price approaching $3,000. Speaking on the development, Min Jung, research analyst of Presto Research, said:

“The recent [crypto] market rally is driven by Trump’s election victory, signaling a potentially more crypto-friendly administration, along with expected FOMC results, which have pushed stocks to all-time highs”.

“The recent [crypto] market rally is driven by Trump’s election victory, signaling a potentially more crypto-friendly administration, along with expected FOMC results, which have pushed stocks to all-time highs”.

Jung noted that Solana had been a standout performer, “driven by strong meme coin activity that has, at times, pushed its transaction fees above Ethereum’s,” which has “bolstered the broader Solana ecosystem, including decentralized exchanges like Raydium”.

Solana Hits New Milestones, SOL Price Rally to Continue?

During the last month of October, Solana outperformed Bitcoin and almost all of the cryptocurrencies from the top league. The blockchain also saw the highest number of monthly active addresses, surging past 123 million. One of the major divers of the Solana network activity has been the rising DEX volumes due to the surge in pump.fun tokens.

Now with Donald Trump resuming office from January 2025, there’s a growing hope regarding the approval of the spot Solana ETF. This is because the Trump administration is likely to replace Chair Gary Gensler with a more crypto-friendly chief.

“There is certainly an element of hope that is pushing up Solana price which includes a possible ETF approval, however, the timeline is still too far away to have a meaningful impact on the current price,” Jung added.

$ETHUSD vs. $SOLUSD (same period)A trader's perspectiveBoth are poised for upside BOs to join BitcoinBut notice, SOL breaking out into new highsETH chewing into overhead resistance (supply)I always favor new highs and prefer SOLOnly those supporting @elonmusk can reply pic.twitter.com/rzQCZOjP9c

— Peter Brandt (@PeterLBrandt) November 7, 2024

vs. (same period)A trader's perspectiveBoth are poised for upside BOs to join BitcoinBut notice, SOL breaking out into new highsETH chewing into overhead resistance (supply)I always favor new highs and prefer SOLOnly those supporting can reply

— Peter Brandt (@PeterLBrandt)

Veteran trader Peter Brandt is more bullish on Solana than on Ethereum shortly. This is just as the SOL price eyes a potential breakout above $200 to continue its rally to an all-time of $260. It will be interesting to see whether the bulls are able to hold above the $200 resistance once again.