In the world of crypto, nothing drives prices up more than steadfast belief and a strong narrative.
The alternating rise of BTC and ETH highlights the structural differentiation in the market, with institutional capital reshaping pricing logic at an unprecedented pace. The rise of the Digital Asset Treasury (DAT) model marks a shift in corporate investment from traditional sectors to accumulating crypto assets, and $SOL is gradually becoming the next target in this transformation.
Recently, institutions like Jump, Galaxy, and Multicoin jointly launched a $1 billion fund, Pantera Capital announced it raised $1.25 billion, and Sharps Technology added $400 million, totaling about $2.5 billion to build Solana DAT entities. All these indicate that SOL is in a transitional phase from retail speculation to stable allocation by institutional capital.
The reason why SOL has not yet experienced a skyrocketing surge like BTC and ETH, breaking through historical highs (ATH), is simply due to the lack of a figure who can persuade mainstream Wall Street capital to rally for it, like Tom Lee.
1. From Memecoin to DAT, SOL's path to institutionalization
Digital Asset Treasury (DAT) refers to: public companies raising funds through stock issuance and then using that money to purchase and hold cryptocurrencies as corporate treasury assets. This provides traditional investors with an indirect investment channel without having to directly engage in the cryptocurrency market.
The Bitcoin DAT model, represented by MicroStrategy's Michael Saylor, has already proven its strong market driving force; subsequently, Tom Lee replicated this with ETH; and now, this trend is blowing towards Solana.
According to public information, several U.S. public companies are actively accumulating SOL:
Upexi (code: UPXI)
This e-commerce company disclosed in its financial report that it holds a large amount of SOL and clearly stated that the primary purpose of holding SOL is to generate considerable passive income through staking. This income is considered part of the company's revenue.
DeFi Developments Corp. (code: DEFC)
This company is dedicated to using its holdings of SOL for lending and liquidity mining to seek higher yields.
This is akin to the institutional path of ETH. Initially, institutions like Grayscale Trust provided ETH exposure to investors through trust funds, locking in a large number of circulating tokens. But the real market ignition happened when mainstream public companies and investors started considering ETH as part of corporate asset allocation.
Therefore, the current SOL is in this early stage of institutionalization. This model is characterized by: it is not concentrated buying for short-term speculation, but a systematic accumulation for long-term holding and gaining returns.
This explains why SOL's price increase is steady but not rapid.
2. Frequent good news, but is the market blind?
Currently, SOL's good news is indeed significant: top institutions like Galaxy Digital, Jump Crypto, and Multicoin Capital plan to raise a billion dollars to establish a treasury specifically for accumulating SOL. This move not only reflects market confidence but could also become a strong price support. However, although SOL's price has risen, it has not reached a level to ignite the market.
What exactly is causing the market to seemingly overlook SOL's good news this time?
The time lag in realizing good news
It should be noted that the billion-dollar fundraising plan is still in the 'advanced negotiation' stage and has not fully materialized. The market price increase is more of a preemptive reaction to this expected good news.
Once the funds are in place and start buying in batches in the market, they will have a more sustained impact on prices. However, this batch buying is entirely different from retail investors concentrating their purchases out of FOMO.
The true purpose of accumulation
According to the disclosed information, the motivation for U.S. public companies to accumulate SOL is mainly to stake it for returns, with reports indicating that as much as 66.5% of SOL's circulating supply is staked and locked. Therefore, newly acquired tokens are likely to be locked in staking pools rather than flowing directly into the trading market. This reduces circulating supply, but on the other hand, it also means they cannot form an active buying force to push prices up. To put it another way, they are more like a foundation, providing SOL with a solid price bottom but not fuel for pushing prices up.
The success of ETH is hard to replicate
Ethereum's support this year does not rely solely on institutional accumulation. Behind it is the solid support of the two narratives of DeFi and NFT. While SOL has consistently stood out in the Memecoin category, there has yet to be a 'killer' ecosystem to ignite public enthusiasm as the meme craze subsides.
In summary, the rise of SOL lacks the kind of catalyst that can collectively drive retail investors into a frenzy.
Institutional entry is always rational and planned; they quietly lay the 'foundation' instead of pushing the price up frantically like retail investors do out of FOMO.
3. Challenging ATH, why does SOL need a Tom Lee?
Tom Lee, co-founder of Fundstrat Global Advisors, is not only a data-driven analyst but also a highly influential market figure. He firmly conveys a message to mainstream Wall Street investors through various channels, such as TV interviews and investor meetings: 'Now is the best time to invest in ETH; it is the next internet.'
It is figures like Tom Lee who elevated ETH from being merely a 'toy for tech geeks' to an investment target that Wall Street can 'seriously consider.' He used concise and powerful language to abstract complex underlying technologies into an easily understandable investment story, successfully persuading Wall Street fund managers, institutional investors, and even U.S. public companies to include ETH in their asset allocation.
SOL is now at a similar crossroads. It has a solid technical foundation, an evolving ecosystem, and robust institutional capital inflow. What it lacks is someone who can tell this story to a larger audience.
Who could become SOL's Tom Lee?
Jump Crypto
As a major supporter and validator of the Solana ecosystem, they have the motivation and ability to take on this role. If they can successfully implement the billion-dollar treasury plan and use it as a starting point for future continuous investments, they will play a key flag bearer role.
Galaxy Digital
This digital asset giant, founded by Wall Street veteran Mike Novogratz, serves as a bridge between traditional finance and the crypto world. If they firmly stand in public for SOL, their influence is undeniable.
The future SOL needs a key figure like Tom Lee to transform the investment stories of Galaxy and Jump into a grand narrative that can attract more mainstream capital to enter the market. This narrative will not only be about 'accumulating and staking SOL' but also 'betting on the future infrastructure of the decentralized world.'
4. Future growth potential and challenges
If SOL can find its Tom Lee, its future growth potential is enormous, and it may follow a path similar to that of Ethereum in its early days.
Strong fundamental support
With the advancement of key upgrades like Firedancer and the proliferation of new applications such as Solana Pay, the network performance and usability of Solana will be further enhanced, providing a solid foundation for price increases.
Continued inflow of institutional capital
The billion-dollar treasury is just a beginning. Once this model proves successful, more funds will flow into SOL through the DAT model, continuously reducing market circulation.
From stability to explosion
When institutional 'steady accumulation' reaches a certain scale, combined with explosive innovations in the ecosystem, price increases will no longer be linear. The scarcity of circulating supply caused by high staking rates will make any large-scale buying quickly explode the price and possibly break historical highs in one go.
In summary, SOL's future will depend on whether it can find a flag bearer who can transform 'good news' into 'belief' amidst the existing institutional trend. This flag bearer will not only be an observer of the market but also a shaper of it.
By then, SOL's distance from its historical high will no longer just be a price number, but a reality that is within reach.