News - Solana reaches record market capitalization of $100 billion
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Solana has reached a new milestone by reaching a market capitalization of more than US$100 billion for the first time. This gives the network a value almost as large as that of sports giant Nike, which is around US$110 billion. With the crypto market booming, Solana seems determined to further strengthen its position as one of the key players.
This past weekend, Solana crossed the $100 billion mark in market capitalization for the first time, a new record for the network. In the process, the price of the Solana token (SOL) rose to nearly $215, currently hovering around $210. Solana's total market capitalization is now just under $100 billion, as the price has dropped slightly, but the increasing volume of tokens is causing this impressive increase in value.
By comparison, although the price of Solana was even higher on Nov. 6, 2021, at around $260, the market capitalization at that time was "only" $80 billion. The increase in value is because there are now more tokens in circulation. This is partly due to Solana's built-in inflation, which starts at 5 percent and is reduced by 18 percent annually. Inflation helps keep the cost of transactions low and allows operators in the network to get paid.
The political climate in the United States also seems to play a role in Solana's rising stock price. The incoming Trump administration, which takes office in January 2025, is known for its pro-crypto stance. Trump is expected to encourage looser regulations around crypto currencies, boosting confidence in Solana and other digital assets. This optimism is fueling speculation about a possible Solana spot ETF, for which applications have already been filed. Approval of such an ETF is seen as more realistic under a crypto-friendly government.
The outlook for Solana remains optimistic. Analysts predict that SOL's value could potentially rise between $600 and $1,000 during this bull run. Moreover, the Solana ecosystem is expanding rapidly, with new features and innovative projects attracting the interest of investors and developers. Solana is on track to remain a major player in the world of blockchain and crypto - and with a market capitalization that rivals established brands such as Nike, the future looks bright.