Why is Solana (SOL) price up today?
Solana price is up today, registering a 13% ascent over the past 24 hours as the wider crypto community continues to celebrate Donald Trump’s win.
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Solana (SOL) price is up on Nov. 6 as the market participants digest the implications of Republican President Donald Trump’s victory over Democrat US Vice President Kamala Harris.
Data from Cointelegraph Markets Pro and TradingView showed Solana price trading at $186, up 13% over the last 24 hours. SOL rose from a low of $156 on Nov. 5, climbing as much as 20.4% to a three-month high of $188 on Nov. 6.
SOL/USD daily chart. Source: TradingView
The upward momentum aligns with a broader cryptocurrency market rally and strong fundamentals within the Solana ecosystem.
Let’s look at the factors driving SOL price up today.
Solana hits a new all-time high against Ether
The ratio tracking the price strength of SOL against Ether (ETH) rose to its highest level ever, suggesting that investors may be rotating away from the world’s largest altcoin.
The SOL/ETH ratio rose above 0.071 during the early Asian trading session on Nov. 6, extending the year-to-date gains to more than 60%.
The SOL/ETH pair has increased by over 766% from 0.0082 on Jan. 1, 2023, to the current value of 0.071. This means that SOL’s value has increased by more than 7.5 times relative to ETH’s at the time.
SOL/ETH daily chart. Source: TradingView
Increasing the SOL/ETH pair suggests that Solana is outperforming Ether. At the time of publication, SOL trades 70% above its Jan. 1 opening, while Ether has surged a mere 11% in 2024.
SOL, Ether year-to-date performance. Source. TradingView
One of the main reasons why SOL has been outperforming ETH throughout 2024 is increased network growth as users turn to the Solana network because of its relatively lower gas fees and memecoins.
Solana TVL jumps by $650 million
Data from DefiLlama shows Solana’s total value locked (TVL) increased to $6.54 billion on Nov. 5 from $5.93 million on Nov. 5. This is a 10% (over $650 million) increase in just 24 hours.
Solana’s TVL is up by 370% year-to-date from $1.4 billion.
Solana total value locked. Source: DefiLlama
A close look at the data reveals that Solana is outperforming other top layer-1 protocols on multiple timeframes. The chart below shows that Solana’s TVL has increased by over 20% over the last 30 days, against Ethereum’s and BNB Chain’s 10% and 0.5% increases, respectively.
Top blockchains: percentage change in TVL. Source: DefiLlama
The rising TVL reflects increasing demand for SOL tokens, positively affecting the price.
Solana-based tokens flash green
Solana’s rally on Oct. 31 coincides with an ongoing correction in the prices of tokens on its network. Most are posting significant daily gains, as shown in the figure below.
Solana-based tokens performance. Source: CoinMarketCap
For instance, Dogwifhat (WIF), the leading Solana memecoin by market capitalization, has rallied over 15% over a 24-hour timeframe. Similarly, Bonk (BONK), Popcat (POPCAT) and Jupiter (JUP) have risen by 18%, 20% and 13%, respectively, over the past day, according to data from CoinMarketCap.
The overall market cap of all Solana-based tokens has jumped from $262 billion on Nov. 5 to $282 billion on Nov. 6. The total trading volume has also risen by 140% over the same period.
Total market cap and trading volume of Solana-based tokens. Source: CoinMarketCap
The increasing value and market activity of tokens within the Solana ecosystem reflect the overall investor sentiment toward the native token, explaining the ongoing rally in SOL price.
Crypto analyst Srigopal Bhattad spotted Solana trading above a long-term descending trendline at $187, saying the breakout is a “bullish signal” for SOL.
“If SOL can maintain above $180 support, it may target the next resistance around $200–$220.”
SOL/USD daily chart. Source: Srigopal Bhattad
Bhattad, however, cautioned his followers to watch for any pullbacks below the $180 level, as this could invalidate the bullish momentum.
Meanwhile, fellow analyst Amdtrades says SOL price has to overcome the resistance at $190 before recording new highs above $200.
Source: Amdtrades
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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