Solana price increased by over 5.5% in the last 24 hours, reaching $185 on July 22, the highest level in the last two months, continuing its recovery trend. The recent gains hint at Joe Biden’s sudden withdrawal from the US presidential race, exciting investors about the chances of pro-crypto candidate Donald Trump winning.
Why is Solana Rising?
Solana’s recent market rise reflects investors’ sentiment that Democrats led by US Vice President Kamala Harris might struggle to surpass Trump in the upcoming presidential race if he participates in the November elections. Following the announcement of Biden’s withdrawal, Solana’s price increased by about 3.5%. Bitcoin and the broader crypto market also experienced a collective increase of 3.22% during the same period.
Cryptocurrencies faced strict regulations under the Biden administration; leading exchanges like Kraken and Coinbase faced lawsuits, and blockchain projects like Solana are being scrutinized for allegedly selling illegal securities.
In contrast, Trump has promised to end Biden’s war on crypto if re-elected. The expectation revolves around a potential announcement at the Bitcoin 2024 conference in Nashville, Tennessee, on July 27, where he might propose making Bitcoin a strategic reserve asset for the US government.
ETF Space and Solana
According to 10x Research founder Markus Thielen, Trump’s re-election could also mean the early removal of Gary Gensler from his position at the US Securities and Exchange Commission (SEC). Gensler is known for his anti-crypto stance. Thielen shared the following statements on the matter:
“Although SEC Chairman Gensler’s term ends on June 5, 2026, he will likely resign in January/February 2025.”
SEC management changes could signal a rise for Solana, considering it could pave the way for Spot Solana exchange-traded fund (ETF) approvals in the US. Rennick Palley, co-founder of crypto venture fund Stratos, shared the following statements on the matter:
“The recent Solana rise stems from improved market sentiment and the increased likelihood that it and its ecosystem tokens will not be seen as securities by a Trump administration.”
“The upcoming Ethereum ETF launch also helps the rise, and SOL appears ready to be the next token with an extremely bullish ETF fund, given its relatively small size and strong price performance.”
