Solana (SOL) recently surged above $200, pushing its market capitalization beyond $105 billion and positioning it among top global assets. Despite pulling back to around $189—a 6% dip in 24 hours—the cryptocurrency maintains support above $196, outperforming peers like Ethereum (ETH) and Cardano (ADA).
Exchange outflows have intensified since mid-July, with more SOL leaving trading platforms than entering. This trend signals reduced immediate sell pressure as investors move tokens to cold storage or staking, shrinking available supply. Concurrently, institutional demand grows: the REX-Osprey SOL spot ETF accumulated nearly $100 million in assets within weeks of launch, while DeFi Development Corp amassed ~1 million SOL in its treasury.
Network upgrades bolster fundamentals. Solana increased block capacity by 20%, achieving over 1,100 transactions per second (TPS) and peaking at 1,600 TPS. Developers propose doubling capacity to 100 million compute units to enhance throughput. Ecosystem growth includes a total value locked (TVL) exceeding $4 billion, MoonPay's new staking feature, and institutional adoption of liquid staking solutions like LsSOL.
Technical analysis indicates upside potential. SOL must breach the $199-$200 psychological barrier and the $218 resistance (0.786 Fibonacci level) to target $275—a 40% rally. Momentum indicators show no bearish divergence, with RSI climbing and Bull-Bear Power favoring buyers. Futures data supports optimism: funding rates hover at a neutral 0.0168%, while rising open interest reflects capital inflows without excessive leverage.
Analysts assign a >95% probability of U.S. spot ETF approval in 2025, with VanEck, Grayscale, and Bitwise applications pending. Approval could unlock institutional inflows, with long-term targets reaching $300-$500.