A bullish 'cup and handle' pattern has clearly emerged on the price chart of Solana (SOL) – a classic technical signal forecasting a potential breakout. Meanwhile, the Solana ecosystem is strongly expanding into the asset tokenization space, with efforts to tokenize stocks and the potential listing of ETFs on Wall Street. These are signals indicating a solid foundation for SOL's long-term growth.
Notably, the market capitalization of stablecoins in the Solana ecosystem is experiencing exponential growth in 2025 – a fundamental indicator reflecting the expansion of the network, liquidity, and the actual usage level of users in the Web3 space.
In the past 12 months, SOL has maintained an upward trend along with the crypto market in general, but recent data suggests it has the potential to outperform many other altcoins in Q2 2025.
Here are 5 main reasons explaining the strong growth potential of Solana:
1. The long-term 'Cup and Handle' pattern signals a new uptrend.
On April 28, well-known technical analyst Ali Martinez (nickname 'Ali Charts') shared a notable observation: the price chart of Solana (SOL) is forming a clear bullish 'cup and handle' pattern.
Cup and handle pattern on Solana's price chart | Source: Ali Martinez/ X
According to Martinez, this pattern began in October 2022, with the 'cup' completing in November 2024, and the 'handle' taking shape in the context of a strong market correction following Donald Trump's inauguration. This is a classic technical analysis pattern, often seen as a sign of a trend reversal towards upward movement in the upcoming period.
Notably, the fact that this model has lasted for over two and a half years has not diminished the reliability of the signal – on the contrary, it further reinforces the accuracy. Martinez also notes that the Bollinger Bands are narrowing on the 4-hour chart of SOL – an indicator suggesting a strong price movement may be imminent.
This reliable classic pattern tends to become more trustworthy the longer the formation time.
Ali also points out that the Bollinger Bands are significantly narrowing on the 4-hour chart of the SOL token – a signal that often precedes a surge in price volatility, indicating that the Solana market may soon enter a phase of strong movement.
Bollinger Bands on Solana's price chart | Source: Ali Martinez/ X
2. Solana promotes the tokenization of stocks on the blockchain.
Smart contracts and tokenization technology are opening up a revolution that could be even more profound than the initial impact of Bitcoin on the traditional financial system. Among the potential applications, the tokenization of stocks is seen as one of the most breakthrough directions.
In the letter to shareholders last April, BlackRock CEO Larry Fink made a strong statement about the potential of tokenized assets. He asserted:
'Every stock, every bond, every fund – every asset – can be tokenized. If that becomes a reality, it will revolutionize the entire investment process. The market will no longer need to close. Transactions that take days will be processed in seconds. And billions of dollars currently stuck due to slow payment processes can be reinvested immediately, driving economic growth.'
In response to this trend, on April 30, the Solana Policy Institute, along with three other organizations, submitted a proposal to the U.S. Securities and Exchange Commission (SEC) titled 'Open Project'. This proposal aims to develop a product allowing the issuance and trading of tokenized stocks directly on the Solana blockchain – a significant step towards realizing decentralized finance for the traditional capital market.
3. The probability of a Solana ETF approval reaches 90%.
On April 29, Eric Balchunas – a senior ETF analyst at Bloomberg – announced that the probability of the Solana ETF being approved by the SEC in 2025 has risen to 90%, surpassing even XRP at 85%. This is the highest rate among the altcoins proposed for ETF approval, including Avalanche and Cardano (both at 75%).
Odds of crypto ETF approval | Source: X
The Bitcoin ETF was launched in Q1 2024, leading to a significant price increase. If a similar scenario occurs with SOL, strong growth potential is entirely possible.
4. Stablecoins in the Solana ecosystem are experiencing spectacular growth.
According to data from DeFiLlama, the market capitalization of stablecoins in the Solana ecosystem has surged from below $5 billion last year to over $13 billion as of May 2025 – an impressive increase indicating growing confidence from both users and institutions in this platform.
This increase not only reflects the stability and efficiency of the Solana network but also highlights the central role of stablecoins in the DeFi ecosystem: both a risk hedge during volatile periods and a flexible capital flow for quick investment and trading strategies.
Stablecoin supply on the Solana network | Source: Defillama
5. Solana is rising in a new growth cycle.
Not merely in sync with the overall growth trend of the cryptocurrency market over the past year, Solana is steadily asserting itself as one of the altcoins with the most outstanding performance. Thanks to significant infrastructure improvements, real-world application expansions, and strong capital inflows, SOL is seen as a promising candidate to lead the new growth phase in Q2 2025.
The convergence of technical, policy, and capital flow factors is painting a sustainable growth picture for Solana. If these trends continue to develop, SOL could very well set new price peaks in the near future.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.
