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Solana Jumps 17%, Flips BNB Chain Token, as Trump's Lead Renews ETF Hopes
An incoming crypto-friendly Trump administration could make allowing crypto ETFs in the U.S. easier, traders say, boosting SOL’s prices.
Updated Nov 6, 2024, 7:35 a.m. Published Nov 6, 2024, 7:33 a.m.
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- The price of Solana's SOL increased by 17% within 24 hours due to heightened expectations for a Solana ETF, with potential listings from VanEck and 21Shares following Cboe's filings with the SEC in July.
- This optimism is fueled by expectations of a more crypto-friendly regulatory environment under a potential Trump administration, with predictions of SOL potentially flipping ETH in market cap and reaching $1000.
- SOL's price surge was accompanied by a market cap increase to over $85 billion, making it the fourth-largest token by market cap.
Solana’s SOL jumped 17% in the past 24 hours as Donald Trump's lead over Kamala Harris in the U.S. election renewed odds of an exchange-traded fund (ETF) approval for the token soon.
“Markets are still heavily mispricing a republican sweep and upside for the industry is likely much higher than previously anticipated,” Syncracy Capital co-founder Daniel Cheung said in an X post. “SOL ETF likely happens in Q1 2025 putting SOL in a position to flip ETH and even trade at $1000.”
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Rennick Palley, founding partner at crypto venture fund Stratos, told CoinDesk in July that SOL was “poised to be the next token with an ETF” as investors widely believe that tokens “won't be viewed as securities by the Trump admin.”
In early July, the Cboe submitted 19b-4 filings with the Securities and Exchanges Commission (SEC) asking to list VanEck's and 21Shares' potential spot Solana ETFs, which were initially filed in late June.
🚨 NASDAQ just secured approval for the $SOL ETF!
— 0xNobler (@CryptoNobler) August 28, 2024
SEC no longer classifies $SOL as security, and BlackRock is already applying.
Solana bull run is about to ignite and many alts will skyrocket 1000x👇🧵 pic.twitter.com/XTWoFXecD3
SOL surged over $185 early Wednesday, reaching a market capitalization of over $85 billion that saw it flip BNB Chain’s BNB to become the fourth-largest token behind bitcoin , ether {{ETH}} and stablecoin USDT.
BTC rose 8.4%, while ETH added 6% in that period. The broad-based CoinDesk 20 (CD20), a liquid index of the largest tokens by market capitalization, rose by 7%.
Coingecko data shows trading volumes crossed $8.8 billion in the past 24 hours, compared to $3.2 billion over the previous 24-hour period.
The surge came as Republican Donald Trump moved closer to becoming U.S. president, leading most key states and grabbing 240 electoral seats of the 270 needed to helm the country.
A Trump win is largely perceived as being bullish for the industry's long-term growth, where he is expected to ease crypto regulations and improve the business environment for entrepreneurs.
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‘Bitcoin to zero’ searches spike in the U.S., but the bottom signal is mixed
Google Trends data shows the term hit a record high in the U.S. this month, though global interest has fallen since peaking in August.
What to know:
- U.S. searches for “bitcoin zero” on Google hit a record high in February as BTC slid toward $60,000 after hitting a peak in October.
- In the rest of the world, searches for the term peaked in August, suggesting fear is concentrated in the U.S. rather than worldwide.
- Similar U.S. search spikes in 2021 and 2022 coincided with local bottoms.
- Because Google Trends measures relative interest on a 0-to-100 scale amid a much larger bitcoin user base today, the latest U.S. spike signals elevated retail anxiety, but does not reliably guarantee a clean contrarian reversal.
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