SOL price eyes a breakout as stablecoin supply and DeFi activity hit record highs on the Solana blockchain.
Solana’s (SOL) bullish momentum may have paused after peaking at $156 on April 25, but fresh data from the network’s ecosystem suggests another leg up could be imminent. A confluence of technical and fundamental indicators — including a bull flag chart pattern and surging stablecoin market cap — support a potential rally toward $220.
Solana Stablecoin Market Cap Hits Record $13 Billion
Stablecoin issuance on the Solana blockchain has soared 156% year-to-date, reaching a new all-time high of $13 billion. The majority of this growth is driven by Circle’s USDC, which commands a 77% share of Solana’s stablecoin market.
Stablecoins are the backbone of decentralized finance (DeFi) on Solana, providing liquidity and fueling onchain transactions. As demand rises for these assets, SOL — the native token used for fees and staking — experiences increased utility, historically correlating with price gains.
Between December 2023 and August 2024, SOL rallied 230%, alongside a 160% surge in stablecoin inflows, from $1.55 billion to over $4 billion — highlighting the impact of liquidity on price momentum.
Solana TVL and DEX Volume Lead the Market
Solana has also strengthened its position as a top DeFi chain, with Total Value Locked (TVL) climbing from $6.1 billion to $7.65 billion over the past month — a 25% increase. Key DeFi applications driving this growth include:
Sanctum (Liquid staking): +44% in deposits
Jito and Kamino: +25% TVL increase
Solana now ranks first in daily decentralized exchange (DEX) volumes, processing $2.61 billion daily — ahead of both Ethereum and BNB Chain. It currently holds a 27.7% share of all DEX volume across blockchains, cementing its dominance in trading activity.
In addition, Solana’s daily transaction count has jumped 25% month-over-month, reaching 57.7 million transactions — another sign of growing network activity and adoption.
Technical Chart: SOL Bull Flag Eyes $220 Target
On the technical side, SOL has formed a bull flag pattern on the daily chart — a bullish continuation setup that typically precedes a breakout.
The pattern forms during a period of downward consolidation after a strong upward move, followed by a breakout above the upper trendline. In Solana’s case, a successful breakout could send SOL price toward $220, representing a 53% gain from the current level of $145.93.
Key Support and Resistance Levels
Support zone: $120 – $130
Intermediate target: $178
Bull flag breakout target: $220
Crypto analyst RisHad emphasized that SOL needs to hold above the $120–$130 region to maintain bullish momentum, according to Cointelegraph.
TL;DR – Why Solana Could Rally to $220
Stablecoin market cap hits record $13B
TVL jumps 25% in one month
DEX volume leads market with 27.7% share
Bull flag pattern targets $220 breakout
