Solana‘s price surged by over 5.5% within 24 hours, hitting $185 on July 22, its highest level in two months, continuing its upward trajectory. This significant price movement follows Joe Biden’s sudden exit from the US presidential race, which has invigorated investors with hopes that pro-crypto candidate Donald Trump could win the presidency.
Why is Solana Rising?
The recent upswing in Solana’s market value mirrors investors’ beliefs that Vice President Kamala Harris, leading the Democratic party, might struggle to beat Trump in the upcoming elections. After Biden’s withdrawal announcement, Solana’s price rose by approximately 3.5%, and the broader crypto market, including Bitcoin, saw a collective increase of 3.22%.
During Biden’s administration, the crypto sector faced stringent regulations, with major exchanges like Kraken and Coinbase dealing with lawsuits. Blockchain projects like Solana have been under scrutiny for alleged illegal securities sales. In contrast, Trump has asserted that he will end Biden’s “war on crypto” if re-elected, further stirring market optimism.
ETF Space and Solana
Markus Thielen, founder of 10x Research, speculates that Trump’s return to office could hasten Gary Gensler’s exit from the US Securities and Exchange Commission (SEC). Gensler’s anti-crypto stance has been a significant point of contention in the crypto community. Thielen predicts Gensler might resign by early 2025, paving the way for more favorable policies for digital currencies.
SEC management changes could benefit Solana, potentially leading to the approval of Spot Solana exchange-traded funds (ETFs) in the US. Rennick Palley, co-founder of crypto venture fund Stratos, noted that improved market sentiment and the possibility of Solana not being classified as a security in a Trump administration are key factors driving the current price rise.
Concrete Market Insights
Key factors to consider:
- Trump’s re-election could lead to favorable crypto regulations.
- Potential resignation of SEC’s Gary Gensler may benefit crypto projects.
- Approval of Spot Solana ETFs could significantly boost Solana’s market presence.
- Market sentiment is bolstered by the anticipation of Trump’s pro-crypto stance.
Overall, the political developments and possible policy shifts can have substantial impacts on Solana’s market performance, with investors closely monitoring these events.