Crypto
Trump Effect on Solana: Why a Price Increase of 500% Is Realistic in 2025
Donald Trump’s pro-cryptocurrency stance, including reducing regulatory pressure, could boost digital currencies, particularly Solana, if he wins the presidency. Solana’s fast, scalable blockchain and its growing popularity with institutional investors position it as a strong contender in the crypto market. However, risks such as market volatility and unpredictable political developments remain a concern for investors.
The cryptocurrency Solana (SOL) has gained popularity in recent years, mainly due to its fast and inexpensive blockchain technology. But a recently published analysis by the renowned Standard Chartered Bank is now making headlines: If Donald Trump becomes US president again, the price of Solana could increase fivefold by the end of the year.
How does this forecast come about, and what are the driving factors behind a possible price increase?
Trump’s influence on the crypto markets
Donald Trump has made it clear during his presidency and also in the current election campaign that he has a rather positive attitude towards Bitcoin and other cryptocurrencies. Trump, who once said that the US dollar could lose strength if the US does not embrace digital currencies, is seen by many in the crypto community as a potential catalyst for a crypto boom.
That is mainly because he already announced during the election campaign that he would reduce regulatory pressure on the crypto industry and steer the US more towards blockchain technology and cryptocurrencies.
A Trump victory in the presidential election could therefore create a positive environment for cryptocurrencies, giving the markets a new boost. Solana in particular, which is increasingly positioning itself as a strong alternative to Ethereum, could benefit from this.
Why Solana?
Solana is often referred to as the “Ethereum killer” because it offers a blockchain that is faster and more scalable than Ethereum. The network can process up to 65,000 transactions per second, while transaction costs are minimal compared to Ethereum. This makes Solana attractive to many developers and DeFi projects. In addition, the Solana ecosystem is growing in popularity among NFT projects, which is giving the price of SOL an additional boost.
However, according to Standard Chartered’s analysis, there is another reason why Solana could benefit particularly strongly: its connection to institutional investors. If institutional investors such as hedge funds and asset managers push more into the crypto market due to looser regulation under Trump, Solana could become one of the preferred investments due to its technological advantages and its already existing infrastructure in the financial sector.
An environment for growth
In addition to the political landscape, economic factors could also play a role. Standard Chartered predicts that under a second Trump presidency, the US key interest rate could be cut further. Lower interest rates make cryptocurrencies and other speculative investments more attractive because they offer higher returns than traditional investments such as bonds. This could motivate institutional and private investors to shift their capital into cryptocurrencies such as Solana.
The demand for innovative blockchain solutions will also continue to grow as more and more companies and developers look for fast, secure and cost-effective platforms for decentralized applications (dApps). Solana is able to meet this demand and could thus consolidate its position in the market.
Do not ignore risks
Of course, this forecast is not without risks. The crypto market is known for its volatility, and political developments are difficult to predict. While a Trump victory could certainly provide positive momentum for Solana and other cryptocurrencies, it remains unclear how other political actors – such as the US Congress – will behave. Regulatory uncertainties and potential market manipulation could also slow down the expected upward trend.
Conclusion: Solana in the fast lane?
The prediction that Solana price could quintuple by the end of 2025 is quite optimistic. It is based on a combination of technological advantages, growing adoption, and a potentially crypto-friendly political environment under Trump. Investors who believe in Solana’s potential could make significant gains in the next few years – provided the political and economic environment develops as expected.
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(Featured image by Scottsdale Mint via Unsplash)
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First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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