SOL Hits a New High, How Much Space for Imagination Does it Have?

[TL；DR]:

Trump issued the Official Trump Meme coin on the Solana chain, which caused a huge sensation in the crypto market and promoted a general rise in the Solana chain eco tokens.

Applications on Solana generated industry-leading revenue totaling $751 million in the fourth quarter of 2024, outpacing Ethereum by 1x.

The progress of the SOL spot ETF approval has attracted much attention, and multiple institutions have submitted applications, which is expected to bring more capital inflows and attention to the Solana chain.

Introduction

Since 2023, the Solana chain token SOL has performed strongly, with rising prices and record market capitalizations. Especially after Trump personally issued the Meme coin Official Trump, the TVL and tokens of the SOL chain eco have seen a general rise.

This article will analyze why SOL prices have reached new highs from multiple dimensions and look forward to future development trends.

Trump Meme Coin Official Trump Triggers a General Rise in SOL Chain Eco Tokens

Last weekend, former US President Trump issued his own meme coin, Official Trump, on the Solana chain, which quickly caused a sensation in the market. We also discussed this in detail in our recent blog post “Trump Is Hot Again, Analyze Trump Family Concept Hot Coins.” This event not only made Trump himself the focus of the market again, but also boosted the activity of the entire Solana chain eco.

According to Cointelegraph monitoring, driven by the TRUMP craze, searches on Google for terms such as “Buy crypto” and “Buy Solana” have surged.

Source: @Cointelegraph

According to market data, after the release of Official Trump, the transaction volume on the Solana chain surged to $14 billion, and the TVL and token prices of various protocols rose across the board.

Source: DefiLlama

Take Raydium as an example. The transaction volume of this DEX increased significantly after the release of Official Trump, and the daily capture fee reached millions of dollars. In addition, decentralized trading platforms such as Moonshot and Jupiter also benefited from this wave of market conditions, attracting a large number of new users.

Source: Gate.io

In particular, the price of Solana’s native token SOL has continued to rise, breaking through the historical high of $290 at one point, surpassing companies such as Meituan. It has risen 29 places in the global asset market value ranking and is currently ranked 157th.

Source: 8marketcap.com

The SOL Chain Eco Continues to Prosper and Develop, and Many Trending Sectors Have Emerged

The rising price of SOL is not accidental. Behind it is the prosperity and development of the Solana chain eco. Solana has made significant progress and breakthroughs as a high-performance, low-cost public chain in recent years.

First of all, the transaction speed and transaction fees of the Solana chain have significant advantages. According to data, in the third quarter of 2024, Solana processed 62 million non-voting transactions per day, and it can process 50,000 transactions per second (TPS) at peak, which is almost 2,000 times faster than Ethereum’s current speed. At the same time, Solana’s transaction fees are also very low, which makes it stand out among many competing projects.

Source: explorer.solana.com

Secondly, the eco projects on the Solana chain are becoming increasingly rich. From DeFi, NFT to infrastructure and other fields, to the now popular AI Agent, DeFAI, etc., Solana has demonstrated strong eco vitality.

In the field of NFT, Solana also performed well, with total sales exceeding $5 billion at the beginning of the year. As the NFT market continues to be hot, Solana has also actively entered the market and launched multiple NFT projects. For example, Solana built a new NFT market Lollapalooza, and formed the Solana NFT Alliance with multiple eco projects to jointly promote common standards among Solana-based projects. These measures not only enhance Solana’s competitiveness in the NFT market but also lay a solid foundation for its future development.

It is worth mentioning that the relatively generous and fair airdrops of NFT protocols, such as Magic Eden and Pudgy Penguins, are in sharp contrast to the stingy and shady airdrops of many L2 protocols on Ethereum.

Source: DefiLlama

According to the data, the Colosseum Radar hackathon attracted more than 13,600 participants, an increase of 63% over the previous session, showing developers’ strong interest in the Solana eco. At the same time, applications on Solana generated industry-leading revenue in the fourth quarter of 2024, totaling $751 million, more than 1 times that of Ethereum.

New Bullish Catalysts for 2025

As the Solana chain eco continues to prosper and the price of SOL continues to rise, more and more investors are beginning to pay attention to the approval progress of the SOL spot ETF. According to multiple media reports, several institutions have submitted applications for the SOL spot ETF to the U.S. Securities and Exchange Commission (SEC). If these applications are approved, it will provide investors with a more convenient investment channel and further promote the rise of SOL prices.

According to data, several ETF products are already targeting the Solana chain in the market. If these products can obtain SEC approval and successfully go public, it will undoubtedly bring more capital inflows and attention to the Solana chain. Especially in the future, if the Solana chain can continue to maintain its technological leadership and eco prosperity, the performance of these ETF products will be even better.

Source: Polymarket

In addition to the spot ETF approval, another proposal on the Solana chain has attracted much attention recently - the deflation proposal. The proposal aims to drive up the price of SOL by reducing its supply. According to the information, the proposal has been supported and recognized by many important nodes and communities on the Solana chain.

In addition to the above two catalysts, the technological upgrade and eco expansion on the Solana chain will also provide strong support for the future development of SOL. According to data, the Solana chain is currently continuously advancing its technological upgrade and eco expansion, especially in cross-chain bridges, decentralized identity, privacy protection, and other aspects.

Of course, SOL also faces risks and challenges in its future development. Especially in the context of the overall volatility of the current crypto market, SOL prices have been under pressure to fall after hitting a record high. In addition, with so many projects on the Solana chain and varying quality, investors also need to choose carefully and diversify investment risks.

From a longer-term perspective, with the continuous development of blockchain technology and the increasing maturity of the crypto market, the Solana chain, as one of the leaders in Layer 1 public chains, will continue to leverage its technological leadership and eco prosperity to create more value returns for investors. Let us look forward to more surprises the Solana chain will create this year.