Layer-1 Underdog Solana (SOL) Continues to Bark Loudly, Market Cap Now Above $100B

Already up over 275% from last year, SOL has reached $212 for the first time since 2021. These gains have pushed its market cap above $100 billion

Despite Bitcoin's impressive rally to new highs, layer-1 underdog Solana (SOL) continues to bark loudly.

Already up over 275% from last year, SOL has reached $212 for the first time since 2021. These gains have pushed its market cap above $100 billion, placing it in the exclusive $100 Billion Club with Bitcoin, Ethereum, and Tether.

Solana's pump comes as the wider crypto industry experiences a rally on the heels of Donald Trump's re-election. With Bitcoin hitting new highs of over $81,700, the broader market has been reignited by the promise of friendlier regulation and support.

Even more excitingly, the best might not be over for Solana. According to BRN, Solana's previous all-time high might soon be a thing of history.

"Solana recently achieved a record high in monthly fees for October, accompanied by strong growth in active users and transaction volumes," BRN analyst Valentin Fournier explains.

"With Bitcoin driving the overall cryptocurrency market cap upward, Solana is well-positioned to deliver outstanding performance. Its rapid growth and leading role in the memecoin trend could propel its price well beyond its previous all-time high of $259 during this bull run."

Solana's price has been surging lately, but what's really driving this impressive performance?

According to Blockworks Research (BRN), Solana's performance is linked to several key factors:

- Record High in Monthly Fees: Solana achieved a record high in monthly fees for October, with strong growth in active users and transaction volumes.

- Bitcoin Rally Boost: As Bitcoin continues to drive the overall cryptocurrency market cap higher, Solana is well-positioned to benefit from this rising tide.

- Memecoin Trend Leadership: Solana is playing a significant role in the memecoin trend, which could further propel its price.

Together, these factors could drive SOL prices to new heights, potentially surpassing its all-time high of $259 during this bull run.

Meanwhile, developers have been working hard for the Solana community.

In a recent development, Coinbase has launched a Bitcoin-backed token on the Solana blockchain, called "cbBTC."

Prior to FTX's collapse, the exchange launched "soBTC," a bitcoin-pegged token that was heavily used in Solana. However, when FTX went down, soBTC became unusable, and Solana's DeFi system lost a crucial liquid bitcoin standard.

This disadvantaged Solana-based DeFi protocols compared to those on Ethereum, which offered bitcoin-backed tokens.

With cbBTC, users can send Bitcoin to Coinbase, receive cbBTC in their Solana wallet, and use it in Solana's DeFi protocols. Notably, Coinbase is entering the scene with $10 million of cbBTC available to Solana protocols and an additional $500,000 circulating in trading pools and reserves.