Gayle signed for Palace yesterday from Peterborough United.
Holloway said on the club website: "I'm absolutely delighted. I was very annoyed when we didn't get him last year, to be honest.
"But now it makes a huge statement for us and it proves that I don't care where I get my people from. I believe it's about how good you're going to be, not just how good you are already.
"I think this fella has got Crystal Palace stamped all over him - the way he moves, the way he chases, the way he works. He's hungry for success and I'm absolutely thrilled that after long conversations we've come up with, I think, a proper Palace player.
"He's got an opportunity now to go and enjoy his football and I think he'll score goals at Premier League level, I really do. He's born to score goals."