Solana (SOL) Records New ATH After 3 Years: Is SOL Ready To Flip USDT?

Solana (SOL) has recorded a new all-time high (ATH) of $262, marking a historic recovery after three years of tumultuous price action.

Solana (SOL) has recorded a new all-time high (ATH) fiyatı 262$, marking a historic recovery after three years of volatile price action. The digital asset, touted as the “Ethereum killer,” once fell as low as $8 at the peak of the FTX exchange collapse and the crypto bear market that followed.

Solana (SOL) Makes Historic Recovery, Eyes USDT Flippening

Solana (SOL), known for its fast and scalable blockchain, has again stolen the show. After dominating the 2020-21 crypto bull market, the digital asset saw its value plummet following the spectacular collapse of FTX, led by Sam Bankman-Fried. However, SOL has staged an impressive comeback over the last two years.

At the time of writing, SOL ranks as the fourth-largest cryptocurrency, boasting a market cap of over $123 billion. The layer-1 blockchain is now just $8 billion away from surpassing stablecoin Tether’s (USDT) market cap of $130 billion.

Interestingly, SOL needs a further 10% price appreciation to decisively flip USDT’s market cap and become the third-largest digital asset by market capitalization. SOL will then only trail Bitcoin (BTC) and Ethereum (ETH) as the third-largest cryptocurrency.

Given the token’s recent price trajectory, it won’t be surprising to see SOL surging past the leading stablecoin’s market cap before the end of the year. In the last three weeks alone, the token has experienced a remarkable 75% surge, rising from $148 on November 4 to $259 at the time of writing.

While the broader crypto market has gained momentum following the victory of pro-crypto Republican US presidential candidate Donald Trump, attributing SOL’s rise solely to this would be oversimplifying the narrative.

Memecoin Frenzy, Increased Network Activity, ETF Potential Aided SOL

Several factors have contributed to SOL’s remarkable turnaround and increased network adoption. One of the most prominent is the ongoing memecoin frenzy, which has become a dominant narrative in the crypto market.

Memecoins, especially those built on the Solana blockchain, haveNARRATIVE throughout the last year. In October alone, the total market cap of Solana-based memecoins topped $10 billion.

This memecoin craze has also brought about a surge in network activity for Solana. Between September and October, Solana saw a 42% month-over-month (MoM) increase in active addresses, reaching approximately 123 million.

Solana has also seen increased decentralized finance (DeFi) activity throughout the year, besides benefiting from the memecoin narrative. According to DefiLlama data, Solana hosts the second-largest DeFi ecosystem globally, with a total value locked (TVL) of $9.265 billion.

Moreover, there are promising prospects for a Solana-based exchange-traded fund (ETF). A recent report suggests that the US Securities and Exchange Commission (SEC) is actively discussing the potential launch of a new spot Solana ETF with several asset managers.

As SOL’s new ATH is certainly an impressive achievement, experts believe the token still has lots of room for growth. At the time of writing, SOL trades at $259, up 6.2% over the past 24 hours.