The cryptocurrency Solana (SOL) has experienced remarkable price movement recently, surging by over 60% from approximately $185 on January 13 to more than $290 on January 19, Forbes reports.
Despite this sharp increase, volatility has persisted, with the price dropping to nearly $230 before rebounding above $260 within 24 hours. Currently, SOL is up 40% for the week, making it the fifth-largest cryptocurrency globally, with a market capitalization of $130 billion.
A major factor in Solana’s recent rally is the launch of the $TRUMP meme coin on its blockchain. The token, tied to former President Donald Trump, has quickly become the largest meme coin on the Solana network, reaching a market capitalization of $10 billion. Since its debut last week, $TRUMP has gained over 700%.
Additionally, First Lady Melania Trump introduced the $MELANIA meme coin, now valued at over $1 billion. While these coins are presented as cultural tokens rather than investment products, their rapid adoption has significantly boosted interest in the Solana platform.
Trump’s return to the presidency and his crypto-friendly stance have further fueled optimism in the cryptocurrency market. Trump has vowed to position the U.S. as the “crypto capital” of the world. Under his administration, pro-crypto appointments like Paul Atkins to lead the SEC and David Sacks as the AI & Crypto Czar signal potential regulatory support for the industry.
This environment has lifted not only Solana but also major cryptocurrencies like Bitcoin, which surpassed $100,000 for the first time, and Ripple’s XRP, which has seen strong growth.
Another critical factor in Solana’s rise is the potential launch of a Solana exchange-traded fund (ETF). Asset managers like Bitwise, VanEck, 21Shares, and Canary await regulatory decisions expected this week. While Solana ETFs might attract less capital than Bitcoin or Ethereum ETFs, their approval could enhance market credibility, attract institutional investment, and simplify retail access to SOL.
Solana’s recent 40% weekly gain follows a pattern of extreme volatility. The cryptocurrency delivered a staggering 11,171% return in 2021, followed by a significant decline of -94% in 2022, and impressive rebounds of 976% in 2023 and 78% in 2024. This volatility stands in contrast to more stable investments like the S&P 500.
While Solana offers rapid, low-cost transactions and supports decentralized applications, challenges remain. The long-term sustainability of meme coins like $TRUMP and regulatory hurdles surrounding ETFs could influence its trajectory.
