From Bear Market to Bull: Solana's 386% Yearly Surge Explained

The Web3 industry continues to grow rapidly, and with Bitcoin's price rise, most altcoins are following suit. This effect is noticeable across the crypto space, generating excitement globally among crypto enthusiasts. One particular altcoin, Solana (SOL), has been showing impressive growth lately, making it a key event for the entire cryptocurrency sector. In this article, we, the Gemhunt team, would like to take a closer look at the latest trends driving Solana's rise and its future prospects.

Solana's price surge took the cryptocurrency community by surprise after the announcement that Gary Gensler, Chairman of the U.S. Securities and Exchange Commission, would be stepping down in January 2025. This news coincided with Donald Trump's return to the presidency of the United States. Following this announcement, SOL's price spiked by 11% in a single day, and the growth continued. Over the past week, the cryptocurrency has gained 23%, and its value has increased by 55% in the last month. What is particularly striking is Solana's yearly growth — a staggering 386%, meaning its price has more than quadrupled in the past 12 months.

However, Solana faced significant challenges in 2022, as a bearish market trend dominated the space. SOL's price was negatively impacted by technical issues, including frequent network outages that hindered its growth. Another blow to the cryptocurrency came with the bankruptcy of the FTX exchange at the end of 2022. This event hit Solana hard because the coin was closely linked to FTX's operations and supported by its founder, Sam Bankman-Fried. As a result of this crisis, Solana's price dropped to $8. By March 2023, Solana was still struggling after Bankman-Fried was sentenced to 25 years in prison for fraud and embezzlement. Despite these challenges, the coin has bounced back and emerged much stronger over the past two years.

Solana's Rise in 2024: How Political and Market Shifts Are Fueling Its Growth

Solana has significantly improved its position thanks to the continuous efforts of its developers, who have focused on enhancing blockchain stability. Alongside these efforts, the release of the Solana Saga crypto smartphone marked a significant milestone for the entire Solana ecosystem. This move highlights the Solana team's ambition to go beyond traditional blockchain solutions and develop new, innovative products for users. This approach has garnered more attention and confidence from investors.

Moreover, Matthew Siegel, head of digital asset research at VanEck, recently suggested that spot exchange-traded funds (ETFs) tied to Solana might be launched in the U.S. soon. This could have a positive impact on the coin's price, as such products generally increase trust and interest from larger investors. Siegel expressed confidence that these changes could propel Solana to even greater heights.

Despite all the positive news and impressive results, the Gemhunt team reminds everyone that it’s crucial to approach investments in cryptocurrency with caution. The Web3 industry is high-risk, and it’s essential to stay vigilant to avoid potential losses. We strongly recommend that all crypto users follow best security practices, use modern methods to protect their assets, and remain aware of the ongoing risks of fraud, which unfortunately still exist in the space.