Why did the price of SOL go up?

Solana (SOL) increased by 0.9% over the last 24 hours, reaching $245.16. This performance outpaced the broader crypto market, which fell by 1.14%. The main factors behind this rise include:

1. Growing institutional interest following Solana’s first Nasdaq-listed validator operator (STKE)
2. Optimism around ETFs despite delays from the SEC, with market expectations pricing in a 90–95% chance of approval
3. Technical breakout above $240, supported by positive momentum indicators like MACD and RSI

Deep Dive

1. Wall Street Validation Boost (Positive Impact)

Overview:
Sol Strategies, a company listed on Nasdaq that holds 6 million SOL tokens (worth about $1.5 billion), started trading on September 9, 2025. Unlike investors who simply hold their tokens, Sol Strategies earns revenue by running validator operations—this includes staking 400,000 SOL and generating around $3 million in annual fees. They also receive institutional delegations, such as 3.6 million SOL from ARK Invest.

Why this matters:

• Validators earn income from staking, which means they are less likely to sell their tokens compared to passive holders, reducing selling pressure on SOL.
• STKE’s strong Q2 revenue of $1.83 million shows that Wall Street is interested in Solana’s infrastructure, not just the token itself.
• Currently, seven public companies control about 1.2% of all SOL tokens, which tightens the available supply and could support prices.

What to watch:
STKE’s Q3 earnings report, expected in November 2025, will provide insight into how profitable their validator operations are and whether institutional delegations are growing.

2. ETF Delays vs. Approval Expectations (Mixed Impact)

Overview:
The U.S. Securities and Exchange Commission (SEC) delayed decisions on Franklin Templeton’s Solana (SOL) and XRP exchange-traded funds (ETFs) until November 14, 2025. This delay is part of a backlog of over 90 crypto ETF applications. However:

• Analysts at Bloomberg estimate a 90–95% chance that these ETFs will eventually be approved (Bloomberg)
• The Cboe exchange has proposed new generic ETF rules that could shorten approval times from about 240 days to 60–75 days

What this means:

• In the short term, there is no immediate boost from ETF approval, but the delays are procedural rather than outright rejections.
• In the medium term, approval could bring in over $2 billion in new investment, based on what happened with Ethereum ETFs.
• There is still some risk as the SEC continues to review whether SOL should be classified as a security, which could affect regulatory treatment.

3. Technical Strength Despite Overbought Signals (Positive Outlook)

Overview:
Solana’s price has bounced back above its 7-day simple moving average (SMA) of $225.08 and is currently 23% higher than its 200-day exponential moving average (EMA) of $177.16. Key technical indicators include:

• MACD: Shows a bullish crossover with a +3.24 histogram reading, indicating upward momentum
• RSI7: At 82.9, signaling the token is overbought in the short term, but the longer-term RSI14 is more moderate at 71.08
• Fibonacci extension: The next price target is $262.68, which corresponds to the 127.2% Fibonacci extension level

What this means:

• There is a risk of a short-term price pullback due to the overbought RSI7 reading.
• If profit-taking occurs, the $228 to $218 range is likely to act as strong support based on Fibonacci retracement levels.

Conclusion

Solana’s recent price increase reflects growing institutional confidence, highlighted by STKE’s Nasdaq debut, and positive sentiment around ETFs despite regulatory delays. With the Altcoin Season Index at 67 (up 52% over the past month), SOL continues to attract liquidity. However, investors should watch the $228 support level and upcoming ETF decision deadlines in November.

Key point to watch: Can SOL maintain its position above $240 ahead of the Federal Reserve’s rate decision on September 17, where a 25 basis point rate cut is already 92% priced in?

What could affect the price of SOL?

Solana’s price is caught between promising technology upgrades and ongoing regulatory uncertainty.

1. Alpenglow Upgrade – Cutting transaction finality to 150 milliseconds could encourage more users and developers (Positive)
2. ETF Delays – The SEC has pushed back decisions on Solana ETFs until November 2025 (Negative in the short term)
3. Whale Activity – Large transfers of $41 million worth of SOL to exchanges suggest possible price swings (Mixed signals)

In-Depth Look

1. Alpenglow Consensus Upgrade (Positive Outlook)

What’s happening:
On September 3, 2025, nearly all Solana stakers (98%) approved the Alpenglow upgrade. This update drastically speeds up transaction finality—from about 12 seconds down to just 150 milliseconds. It replaces older protocols with new ones called Votor and Rotor, improving speed and reliability, especially for decentralized finance (DeFi) apps and blockchain games.

Why it matters:
Faster transaction finality means less chance for others to jump ahead in transactions (front-running), making the network more secure and user-friendly. This could attract bigger players like institutional validators and developers building apps. Past major upgrades in other blockchains, like Ethereum’s Merge, have led to price increases of 20–30% after launch.

2. SEC ETF Delays (Short-Term Negative)

What’s happening:
The U.S. Securities and Exchange Commission (SEC) delayed decisions on Solana ETFs from companies like Franklin Templeton until November 14, 2025. The SEC cited concerns about monitoring and custody of assets. There are over 90 crypto ETF applications waiting for approval, and while Bloomberg estimates Solana’s chances at 90%, procedural delays are holding things up (SEC filing).

Why it matters:
These delays create uncertainty, which can slow down price momentum in the short term. However, if approved, Solana ETFs could bring in $1 to $2 billion in new investments, similar to what happened with Bitcoin ETFs. Recently, SOL’s price rallied 20% in a week to $246, showing optimism, but the risk of rejection still exists.

3. Whale Activity & Supply Trends (Mixed Impact)

What’s happening:
On September 12, Galaxy Digital moved 224,000 SOL tokens (worth about $41 million) to major exchanges like Binance and Coinbase. Meanwhile, retail investors are holding more SOL than ever. Out of 489 million total SOL tokens, only 260 million are actively circulating. Public companies like Sol Strategies control about 1.2% of the supply (Bitget).

Why it matters:
Large transfers to exchanges could mean whales (big holders) are preparing to sell, which might cause short-term price drops. But at the same time, fewer tokens on exchanges (4.13 million SOL were withdrawn in August) suggest long-term holders are accumulating. Also, 63% of SOL is staked—locked up to support the network—reducing the amount available to sell.

Conclusion

Solana’s price will largely depend on how well the Alpenglow upgrade is adopted and the SEC’s ETF decisions in November. While whale selling and regulatory delays might limit gains around $250, growth in institutional validators and a shrinking supply could set the stage for a price rally in 2026.

Key question: Will the SEC’s general ETF rules, expected by October 2025, speed up Solana’s approval, or will regulatory concerns overshadow its technological progress?

What are people saying about SOL?

The conversation around Solana (SOL) is divided between those who expect a strong price breakout and others who are skeptical about its future, especially with upcoming ETF developments. Here’s what’s trending:

1. Cup-and-handle chart patterns suggest price targets between $220 and $425
2. Excitement over ETF approvals clashes with concerns about whether demand will last
3. Institutional investors accumulating SOL versus large token unlocks that could increase selling pressure
4. Concerns about network reliability resurface after rumors of outages

Deep Dive

1. @GreenBnz: Cup & Handle Breakout → $425 Target Bullish

"SOL completed a multi-month cup & handle – textbook setup for 180% rallies."
– @GreenBnz (12.4K followers · 189K impressions · 2025-08-28 03:31 UTC)
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What this means: This classic chart pattern often signals a strong upward move, which is positive for SOL. However, some investors wonder if the current price around $246 already reflects this optimism.

2. CoinMarketCap Analysis: ETF Momentum vs. $585M Unlock Bearish

"ETF inflows ($12M debut) pale vs. $585M SOL set to unlock – sellers may dominate Q4."
– CMC Technicals (Official Account · 8.2M impressions · 2025-08-17 11:35 UTC)
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What this means: Although ETFs are bringing some buying interest, a large amount of SOL tokens will become available soon, which could lead to increased selling and put downward pressure on the price.

3. @DriftProtocol: Institutional Accumulation Zone Bullish

"DeFi Dev Corp bought 153K SOL ($37.6M) at $246 – smart money loading up."
– @DriftProtocol (89K followers · 2.1M impressions · 2025-07-17 12:12 UTC)
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What this means: Large investors are buying SOL around $240–$260, signaling confidence that this price range could be a solid foundation for future growth.

4. @MyriadMarkets: Network Outage FUD Resurfaces Mixed

"5-hour downtime rumor spreads – SOL drops 6% before denial."
– @MyriadMarkets (23K followers · 412K impressions · 2025-09-03 17:39 UTC)
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What this means: Rumors of network outages caused a brief price drop, but the issue was quickly denied and the price recovered. Still, concerns about Solana’s reliability linger and can affect investor confidence.

Conclusion

Overall, the outlook for SOL is cautiously optimistic. Technical traders are watching for price moves above $300, while bigger investors are balancing ETF interest against the risk of large token unlocks. The $240–$260 price range is key this week—holding above it could confirm an upward trend, while falling below might lead to some profit-taking toward $220. Either way, Solana remains one of the most volatile and closely watched large-cap cryptocurrencies.

What is the latest news about SOL?

Solana is gaining momentum with Wall Street recognition and strong ecosystem growth, even as ETF approvals face delays. Here’s the latest update:

1. Solana’s Wall Street Debut (September 12, 2025) – Sol Strategies, a company supporting Solana’s network, started trading on Nasdaq, holding over 6 million SOL tokens, signaling growing interest from big investors.
2. SEC Delays Solana ETF Decision (September 12, 2025) – The U.S. Securities and Exchange Commission (SEC) postponed its decision on a Solana ETF until November 14, amid a backlog of more than 90 crypto ETF applications.
3. Solana Leads in User Growth (September 11, 2025) – Solana tops blockchain charts with 58 million active users monthly, boosted by decentralized finance (DeFi) projects and technical upgrades like Firedancer.

Deep Dive

1. Solana’s Wall Street Debut (September 12, 2025)

What happened:
Sol Strategies, a company that helps run Solana’s network, began trading on Nasdaq under the ticker “STKE.” It holds over 6 million SOL tokens (worth about $1.5 billion) and earns more than $3 million annually from staking and managing tokens for big investors like ARK Invest. Unlike others who just hold SOL tokens, Sol Strategies operates validator nodes that help secure the network and has passed a rigorous SOC 2 security audit.

Why it matters:
This move shows growing acceptance of Solana by traditional financial markets. It creates steady income from staking fees and reduces the number of SOL tokens available for trading, which can support the token’s value. The company’s plan to tokenize its shares for trading on blockchain platforms could further connect traditional finance with decentralized finance (DeFi). (Bitget)

2. SEC Delays Solana ETF Decision (September 12, 2025)

What happened:
The SEC postponed its decision on Franklin Templeton’s proposal for a Solana exchange-traded fund (ETF) until November 14, 2025. This delay is part of a larger backlog of over 90 crypto ETF applications waiting for review. Despite the delay, experts like Bloomberg Intelligence estimate a 90–95% chance the ETF will be approved, with betting markets showing even higher odds.

Why it matters:
While the delay is neutral in the short term, it’s a positive sign for the long term. The SEC is carefully reviewing issues like how the ETF will securely hold Solana tokens and monitor trading activity. Approval could bring significant investment inflows, similar to what happened with Bitcoin ETFs in 2024, which attracted $28 billion. However, regulatory questions about whether SOL is considered a security remain a challenge. (MEXC)

3. Solana Leads in User Growth (September 11, 2025)

What happened:
Solana is the fastest-growing blockchain in 2025, with 58 million monthly active users and $290 billion in monthly trading volume. Its popularity is driven by decentralized finance (DeFi) and non-fungible tokens (NFTs), along with technical improvements like the Firedancer client upgrade and lower transaction fees compared to Ethereum.

Why it matters:
Strong user growth and developer activity (over 2,856 developers) indicate a healthy and expanding ecosystem. However, competition from other blockchains like Base and Near, as well as reliance on meme tokens (which account for 75% of some revenue streams), could introduce volatility. (Weex)

Conclusion

Solana’s growing presence in traditional finance and its expanding user base highlight its progress as a mature blockchain platform. While ETF approval delays test investor patience, the Nasdaq listing of validator firms and a vibrant ecosystem suggest a positive outlook for SOL. The key question remains: can Solana keep up its momentum if regulatory approvals take longer than expected?

What is expected in the development of SOL?

Solana’s upcoming plans focus on improving speed, scalability, and building financial tools:

1. DoubleZero Network Launch (Mid-September 2025)
2. Alpenglow Consensus Upgrade (Late 2025)
3. Firedancer Validator Client (Late 2025)
4. Internet Capital Markets Vision (2027)

In-Depth Look

1. DoubleZero Network Launch (Mid-September 2025)

What it is:
Solana plans to replace the usual internet connections used for transactions with DoubleZero, a special peer-to-peer fiber network. This network is already being tested with over 100 validators (nodes that confirm transactions). The goal is to reduce delays and inconsistencies in transaction speed, which is especially important for fast trading (Blockworks).

Why it matters:
Lower delays (under 10 milliseconds) could attract professional traders who rely on speed, increasing market activity and liquidity. However, this depends on validators switching to the new network, which could be challenging in the short term.

2. Alpenglow Consensus Upgrade (Late 2025)

What it is:
This upgrade, approved by nearly all community voters (98.27%), changes how Solana confirms transactions. It aims to reduce the time it takes to finalize a transaction from about 12 seconds to just 150 milliseconds. New protocols called Votor and Rotor will help achieve this near-instant confirmation (Diario Bitcoin).

Why it matters:
Faster transaction finality makes Solana more suitable for real-time applications like decentralized finance (DeFi) and gaming. However, validators might need better hardware to keep up, which could make it harder for smaller participants to join, potentially affecting decentralization.

3. Firedancer Validator Client (Late 2025)

What it is:
Jump Crypto is developing Firedancer, a new validator software designed to handle over 1 million transactions per second (TPS) by optimizing network and processing components. Early tests show it can reach 1 million TPS per core on standard hardware (Solana Labs).

Why it matters:
This upgrade could reduce the risk of network outages by offering more software options for validators. If successful, Solana could match the transaction speeds of major payment networks like Visa and Mastercard. However, it still needs thorough testing under real-world conditions.

4. Internet Capital Markets Vision (2027)

What it is:
Looking ahead to 2027, Solana aims to build blockchain-based financial markets using a system called Application-Controlled Execution (ACE). This lets decentralized apps (dApps) control the order of transactions. The first step is launching Jito’s Block Assembly Marketplace (BAM), which aims to make transaction ordering fairer and more transparent (Cointelegraph).

Why it matters:
This could combine the speed of traditional centralized exchanges with the transparency of blockchain, making Solana attractive to large financial institutions. However, clear regulations around digital assets will be important for this vision to succeed.

Conclusion

Solana’s roadmap focuses on major technical improvements—like faster transaction finality and higher throughput—and building financial infrastructure to support institutional use. These upgrades could make Solana a leader in fast blockchain applications. Still, challenges remain around keeping the network decentralized and navigating regulatory issues. The big question is whether these engineering advances will lead to widespread, lasting adoption beyond just speculative trading.

What updates are there in the SOL code base?

Solana’s software updates focus on improving scalability and maintaining the network.

1. RPC Migration (December 2024) – Updated developer tools to Agave v2 standards without breaking existing apps.
2. Block Capacity Boost (July 2025) – Increased block processing power by 25%, allowing more transactions per block.
3. Alpenglow Consensus (Testing) – New protocol aiming to finalize transactions in 150 milliseconds, much faster than the current 12 seconds.

In-Depth Explanation

1. RPC Migration (December 2024)

What happened: Solana replaced older remote procedure call (RPC) methods like getConfirmedBlock with newer ones such as getBlock and getLatestBlockhash. This change aligns with the Agave v2 standards and supports the upcoming mainnet-beta 2.0 upgrade. Developers need to update their software development kits (SDKs), but users won’t experience any disruptions.
Why it matters: This update mainly helps developers by simplifying and modernizing the tools they use to interact with the Solana network. It doesn’t directly affect users but sets the stage for future improvements. (Source)

2. Block Capacity Boost (July 2025)

What happened: Solana increased its block capacity from 48 million to 60 million Compute Units (CUs). Compute Units measure how much processing power is available per block, so this means Solana can handle about 20% more transactions at once. This upgrade follows an earlier increase in April and is part of a plan to eventually reach 100 million CUs.
Why it matters: More capacity means less network congestion and fewer failed transactions during busy times. This should lower fees and improve the performance of decentralized finance (DeFi) and gaming apps on Solana. It also helps Solana compete with Ethereum’s Layer 2 solutions, which aim to increase transaction speed and reduce costs. (Source)

3. Alpenglow Consensus (Testing)

What happened: Solana is testing a new consensus protocol called Alpenglow, which aims to reduce transaction finality time from about 12 seconds to just 150 milliseconds. It uses two components: Votor for fast block approval and Rotor for efficient data sharing. Early tests show promising results under ideal conditions.
Why it matters: Faster finality means transactions are confirmed almost instantly, which is crucial for real-time applications like payments and gaming. This could attract more institutional traders and mainstream decentralized apps (dApps). However, the system still depends heavily on Agave validators, which could raise concerns about centralization. (Source)

Conclusion

Solana is focusing on making its network faster and more scalable while updating developer tools to support these changes. The increased block capacity and faster transaction finality could improve user experience and help Solana compete with other blockchain platforms. However, maintaining a diverse and stable group of validators is important to keep the network secure and decentralized. The balance between high performance and decentralization will be key to Solana’s future growth, especially as it competes with Ethereum Layer 2 solutions.