The Eagles have secured the 22-year old striker from Peterborough United for £4.5million and Holloway was delighted to welcome him to Selhurst Park.
"I'm absolutely delighted. I was very annoyed when we didn't get him last year, to be honest," the Palace boss said.
"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."
This completes Gayle's meteoric rise to the Premier League after only playing in the Essex Senior League with Stansted in 2011. He then moved to League Two Dagenham & Redbridge, which included loans with Bishop's Stortford and Peterborough, before his permanent Posh shift earlier this year.