Solana (SOL) continues to strengthen its position amid growing on-chain activity and increased institutional inflows. Over the past two days, SOL’s price has surged more than 18%, breaking through the psychological threshold of $205. Despite a brief pullback below this level, the asset’s performance is significantly outpacing most altcoins.
On-Chain Metrics at Multi-Month Highs
In the past 30 days, Solana’s network has shown remarkable growth in key on-chain indicators:
- Transaction count increased by 45%;
- Network fees also rose by 45%.
This steady uptick in activity highlights Solana’s growing demand as a platform for decentralized applications, DeFi, and NFTs. In contrast, BNB Chain recorded a 36% decline in monthly transaction activity over the same period.
Futures Market: Cautious Optimism
Derivatives data reflects a measured yet positive market sentiment.
The funding rate for perpetual futures on SOL stands at 12% annually, a level that indicates mildly bullish positioning without excessive risk-taking.
This moderate leverage environment could help sustain the trend, reducing the likelihood of sharp liquidations that often accompany overheated markets.
DEX Trading Volumes Down for Third Week
Despite stronger on-chain metrics, trading activity on decentralized exchanges (DEXs) within the Solana ecosystem has been declining for three consecutive weeks. According to Defi Llama, monthly DEX volumes reached $113.14 billion, suggesting either a temporary shift toward centralized exchanges or reduced speculative activity on-chain.
Institutional Interest: Solana Staking ETF
July saw the launch of the REX-Osprey Solana Staking ETF, a fund enabling investors to earn staking rewards without directly purchasing SOL. It has already attracted $161 million in assets under management.
For comparison, spot Ethereum ETFs recorded a monthly inflow of $5.4 billion in July — a record for the asset class. While the numbers differ greatly, the launch of a staking ETF represents a milestone in Solana’s adoption by institutional players.
Current Price and Path to All-Time High
At the time of writing, CoinGecko data shows SOL trading at $204.59, up 3.1% in 24 hours and 28.1% over the past month.
The asset is still roughly 43% below its all-time high (ATH) of $293.31, reached on January 19. Bridging this gap will likely require:
- Continued inflows from both retail and institutional investors;
- Sustained on-chain activity growth;
- A stable derivatives market without excessive leverage.
Outlook and Risks
Bullish factors:
- Rising transaction count and network fees;
- Launch of the staking ETF and institutional adoption;
- Moderate leverage levels in the futures market.
Bearish factors:
- Declining DEX trading activity;
- Potential profit-taking after recent gains;
- Broader market volatility.
If these positive fundamentals persist, Solana could test the $220–$230 range in the short term. A retest of the ATH will depend on sustained capital inflows and continued growth of the ecosystem.
💡 On August 13, SOL broke above $200 for the first time since July — a key psychological milestone for traders and investors.
