The Solana logo on a phone screen and representation of cryptocurrencies are seen in this photo taken in Krakow, Poland, Aug. 21, 2021.
Jakub Porzycki | NurPhoto | Getty Images
Solana’s SOL token rocketed after a memecoin linked to President-elect Donald Trump launched on the popular blockchain network.
The price of SOL was up by more than 12% Saturday, according to Coin Metrics. Earlier, it surged nearly 23%. Ether, one of its main competitors, fell 7%.
The moves began late Friday after the launch of a new memecoin announced on Trump’s social media accounts and issued on the Solana blockchain. “Official Trump” (TRUMP) has attracted more than $5 billion since then to become the largest memecoin on the Solana network, according to CoinGecko.
That move came ahead of Trump’s inauguration Monday, which is widely expected to usher in a new era of innovation and productivity in the crypto industry, and on the day crypto villain Gary Gensler ended his term as chairman of the Securities and Exchange Commission.
Solana is the fourth-largest cryptocurrency by market cap, excluding stablecoins. It was created in 2020 as a faster and cheaper alternative to Ethereum and now hosts some of the most popular memecoins like dogwifhat and Pudgy Penguins, as well as decentralized finance (DeFi) and gaming projects.
The token has become so popular asset managers are seeking to issue exchange traded funds tracking its price. The decision deadline for potential ETFs from Bitwise, VanEck, 21Shares and Canary is approaching Jan. 25. ProShares on Friday evening also filed for four different ETFs based on SOL. If approved this year, SOL ETFs may only attract a fraction of the assets that flowed into bitcoin ETFs in their first year of trading, according to JPMorgan.
SOL gained 85% in 2024. It’s now up 25% this year.