- Solana price is up 386% five months after the SEC labeled SOL a security, alongside Cardano, Polygon and others.
- SOL has outperformed its peers in the list, with its market capitalization closing in on Ripple after 65% leap in November.
- Surge likely attributed to the Solana network building itself as the choice Layer 1, rivaling Ethereum.
- Ecosystems are migrating to the Solana network for its superior speed, cost-effectiveness and scalability.
Solana (SOL) price is on a tear, outperforming the broader market and catapulting itself into the fold of the cryptocurrency top six. It comes after a turbulent year, with SOL finding itself in the crosshairs of a regulatory crackdown.
Solana outperforms peers despite regulatory woes
Solana (SOL) price continues to outperform the broader market, recording a remarkable run beginning July 10 when the US Securities & Exchange Commission (SEC) branded SOL a security. This happened when the financial regulator was clamping down on exchanges, levying charges against Binance and Coinbase for alleged violation of security laws.
In the crackdown, Solana, Cardano (ADA), and Polygon (MATIC) were among the altcoins branded unregistered securities. Others include Algorand (ALGO), Filecoin (FIL) and Decentraland (MANA).
SEC crypto crackdown
The Solana Foundation refuted the claims, saying it disagreed with the characterization of SOL as a security and welcomed the engagement of policymakers to achieve legal clarity in the digital assets space.
The Solana Foundation disagrees with the characterization of SOL as a security. We welcome the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the…
— Solana Foundation (@SolanaFndn) June 10, 2023
The Cardano and Polygon ecosystems also defended themselves, but this did not dissuade the financial regulator’s stance.
Despite the labeling, Solana price has climbed the ladder to feature among the crypto top six. Its market capitalization has closed in on Ripple (XRP), at position five, while SOL ranks six with around $26.5 billion, up from the $296.5 million recorded in June.
On metrics of price, Solana has outperformed its peers in the SEC’s list of assets that are allegedly securities, up 386% since June 10 when the SEC’s axe fell on the Binance exchange with the allegations. Meanwhile, Polygon and Cardano prices are up only around 73%.
SOL/USDT 1-day chart, ADA/USDT 1-day chart, MATIC/USDT 1-day chart
Possible driver for Solana price
The surge in Solana price comes as the network continues to gain favor in the Layer 1 (L1) realm, where it contends against giants like Ethereum (ETH). Networks have been migrating to the Solana network, bidding farewell to Ethereum as they chase the former’s exclusive use cases while avoiding the high gas fees offered on the Ethereum network.
Render Foundation advisor Ryan Shea said that Render migrating to the Solana network would unlock significant and exciting opportunities for the Render ecosystem, citing Solana’s core infrastructure, superior speed, cost-effectiveness and scalability.
As such, Solana’s incredible transaction speeds, low costs and commitment to web-scale architecture continue to be a key attraction. Translating to greater adoption, this is a bullish fundamental for Solana price.