The price of Solana (SOL) is rising: What's behind it?

The price of Solana (SOL) is rising: What's behind it?

Today, the price of Solana (SOL) rose more than 9% to $257, supporting the overall recovery in the crypto market, where Bitcoin (BTC) has surpassed the $105,000 mark. This rise is the result of a combination of rising network activity and expectations for the approval of the Solana ETF.

Increased network activity

Solana is experiencing a significant increase in transactions, indicating its growing adoption. The number of daily transactions increased from 45,881 to 19,000 between January 17 and 19, indicating a rebound in network activity. This growth is partly linked to popular memecoins such as TRUMP and MELANIA. The total blocked value (TVL) on Solana rose to an all-time high of $12 billion.

Expectations for the Solana ETF

Another key driver of the price increase is the anticipation of the approval of the Solana spot ETF. Polymarket users predict a 92% chance of approval in 2025, which could attract $3 billion to $6 billion in capital and increase Solana's legitimacy in the market. Applicants for the ETF include major firms such as VanEck and Grayscale.

Analysts estimate that if the bulls maintain momentum, the price could rise to a technical target of $580. The relative strength indicator suggests that the market is not overheated, giving room for further upside.

*This is not an investment recommendation.

Coingarage team