Solana Soars 17% Following Trump's Election Win

SUMMARY

Solana’s price rose 17% amid expectations for a Solana ETF, potentially from VanEck and 21Shares.
Optimism around a crypto-friendly Trump administration boosts predictions of SOL reaching $1,000.

Following Donald Trump’s victory in the U.S. presidential election, Solana’s SOL token rose 17% in the final day, boosting expectations for a Solana ETF and hopes for a more lenient regulatory environment for cryptocurrency assets. Trump’s victory is seen by investors as crucial since it will probably speed up the approval of ETFs and encourage a more benevolent regulatory environment. Because of this excitement, Solana’s trading volume soared to almost $8.8 billion in a single day, which was much more than the $3.2 billion volume the day before. Under Trump’s leadership, analysts believe regulatory barriers may be loosened, creating an atmosphere that puts SOL in a position to compete with Ethereum in terms of market capitalization, with estimates that it may reach $1,000.

“The industry is undervaluing the impact of a Republican-led administration, with significant upside potential for Solana,” Daniel Cheung, co-founder of Syncracy Capital, said on X. According to Cheung, a Solana ETF might be released as early as Q1 2025, improving SOL’s market position and attractiveness. The Trump administration is not expected to designate Solana as a security, according to Rennick Palley, founding partner at the cryptocurrency venture fund Stratos. This might help Solana obtain ETF classification and attract institutional investors.

Cboe filed 19b-4 filings with the SEC in early July to list spot Solana ETFs from asset managers 21Shares and VanEck. Under the previous government, these recommendations, which were first submitted in June, were viewed with suspicion. Industry insiders, however, are optimistic that the SEC’s strategy will change now that Trump is in power. These changes caused SOL’s market capitalization to increase to almost $85 billion, overtaking Binance’s BNB to take the fourth-largest spot in the cryptocurrency rankings, behind only Bitcoin (BTC), Ethereum (ETH), and the stablecoin USDT. The bullish climate also helped Bitcoin and Ethereum, which saw gains of 8.4% and 6%, respectively. This helped the CoinDesk 20 index, which measures the biggest tokens by market capitalization, increase by 7%.

A pro-crypto president signals transformative change for the industry. Trump’s administration is expected to drive legislative changes, reducing regulatory uncertainty and enabling entrepreneurs and investors to operate with greater freedom. Many believe that Trump’s favorable stance toward digital assets will lead to substantial industry growth, reinforcing Solana’s market strength. As Trump begins his term, crypto markets are positioned to capitalize on what many view as a new era for digital assets, with Solana at the forefront of this shift.