A series of on-chain indicators, coupled with a surge in institutional interest, suggest a rise in the crypto asset.
In a crypto market in free fall, Solana
Intrigue. Recording a decline of 15.5% after nearing $210, the asset triggered fears of a bearish double top among some analysts. Yet, a series of on-chain indicators, coupled with a surge in institutional interest, reveal a completely different reality. And what if Solana, against all odds, was about to regain $200?
Solana drops, but the fundamentals hold
SOL has lost 15.5% since its recent peak at $209.80, marking a decline that has sparked speculation about a possible double top reversal pattern. However, this reading only partially reflects the reality of ongoing dynamics. Indeed, Solana has consolidated its position as the second largest DEX ecosystem with $111.5 billion in volume over 30 days, thus surpassing all Ethereum Layer 2 solutions according to DefiLlama. These figures underscore robust and growing decentralized activity.
This dynamism is also reflected in the network's revenues. Solana generated $35.6 million in fees over the last 30 days, marking a 22% increase. In comparison, Ethereum, while leading with $41.4 million, shows a decline of 7%. This growth is supported by a simplified user experience, without complex bridges or Layer 2 solutions. Furthermore, the higher hardware requirements for validators enhance the security and resilience of the network.
Solana's secret weapon: Institutional investors
Beyond on-chain metrics, it is the influx of institutional capital that offers Solana an unexpected lever of resilience. Open interest on SOL futures has climbed to $10.7 billion, even surpassing that of XRP, which has an 81% higher market capitalization. This dynamic reflects a surge in open positions, a direct reflection of renewed interest from industry professionals.
Financial products linked to Solana confirm this trend. There is $2.8 billion in exposure through derivative products like ETFs or ETPs. In addition, there is a native staking yield of 7.3%, an additional appeal in light of the potential launch of a Solana spot ETF in the United States. According to Bloomberg analysts, the probability of SEC approval by the end of the year exceeds 90%.
This cocktail of indicators positions Solana not as a cyclical victim of the market, but as a strategic asset undergoing reevaluation. In short, while the recent price decline has sown doubt among short-term traders, the technical fundamentals and massive institutional interest could well reposition the crypto on the path to $200, or even beyond. A shift in perception could be imminent.
