Why did the price of SOL go up?
Solana (SOL) increased by 0.53% to $122.04 over the past 24 hours, slightly outperforming the overall cryptocurrency market, which rose 0.75%. The main factors behind this movement include:
- ETF inflows – Solana spot ETFs attracted $1.48 million in new investments, while Bitcoin and Ethereum products experienced outflows.
- Tokenization momentum – Analysts point out Solana’s advantage in supporting fast, high-volume trading infrastructure.
- Technical rebound – Positive signals from technical indicators like the MACD and strong support at the $123.61 Fibonacci level.
Deep Dive
1. Altcoin ETF Rotation (Positive Influence)
Overview: On December 24, Bitcoin ETFs saw $175 million in withdrawals, and Ethereum ETFs lost $52.7 million. In contrast, Solana spot ETFs gained $1.48 million, marking their 28th consecutive day of inflows since launching in November (CoinoMedia).
What this means: Institutional investors seem to be diversifying their portfolios by moving into altcoins like Solana, which have clearer regulatory paths. Despite Solana’s price dropping 53% since October, these steady ETF inflows suggest investors are buying at what they see as discounted prices.
What to watch: Upcoming decisions by the SEC on Solana ETF applications could lead to larger investment inflows if approved.
2. Asset Tokenization Narrative (Mixed Impact)
Overview: Rob Hadick from Dragonfly highlighted Solana’s strengths in handling tokenized assets during a CNBC interview. He emphasized Solana’s transaction speed—over 2,600 transactions per second (TPS)—making it well-suited for high-volume trading (Binance Square).
What this means: While this is encouraging for Solana’s long-term adoption, the tokenization trend hasn’t yet overcome broader market challenges, as reflected in Solana’s 37% price drop over the last 90 days. The interview may have helped improve short-term investor sentiment.
3. Technical Rebound (Neutral)
Overview: Solana held strong at the important 78.6% Fibonacci retracement level ($123.61), and the MACD indicator turned positive for the first time since December 18.
What this means: The price remains within a range of $117.32 to $146.72, but the Relative Strength Index (RSI) at 37.96 indicates weak momentum. The recent 0.53% price increase came with 36.7% lower trading volume than the 24-hour average, suggesting cautious buying activity.
Conclusion
Solana’s recent price increase seems driven more by ETF rotation and positive narratives than by major fundamental changes. While partnerships around asset tokenization could boost demand in 2026, the immediate focus is whether Solana can rise above its 30-day simple moving average ($132.19). Key point to watch: Can Solana maintain support at $120 if Bitcoin tests its $86,000 support level?
What could affect the price of SOL?
Solana’s price is caught between exciting technology improvements and uncertain regulations.
- ETF Approvals – Possible U.S. spot SOL ETFs could bring in big investors (positive).
- Network Upgrades – The Alpenglow update promises faster transactions, but changes to rewards are mixed news.
- Regulatory Risks – Delays and debates from the SEC create uncertainty (negative).
Deep Dive
1. ETF Momentum (Positive Impact)
Overview: Companies like VanEck, 21Shares, and Fidelity have applied to launch spot Solana ETFs in the U.S. Experts believe there’s a 95% chance these will be approved by late 2025. The existing REX-Osprey ETF already manages $338 million, showing strong interest.
What this means: If approved, Solana could see a big boost similar to Bitcoin’s 150% price jump after its ETF approval in 2024. With Solana’s market value at $71 billion, there’s room for more investment. However, SEC Chair Gary Gensler remains cautious about approving ETFs for cryptocurrencies other than Bitcoin and Ethereum (Bloomberg).
2. Alpenglow & Tokenomics (Mixed Impact)
Overview: The Alpenglow upgrade aims to speed up transaction finality to 150 milliseconds (currently 2.5 seconds). Another proposal plans to cut account creation fees by 90% to encourage developers. At the same time, there’s a plan to reduce staking rewards from 6% to 3% by 2029.
What this means: Faster transactions could attract traders who rely on quick trades, but lower staking rewards might lead some validators to sell their tokens. In fact, Solana’s price dropped 42% after a similar staking reward cut was proposed in 2023 (Helius).
3. Regulatory Crosscurrents (Negative Impact)
Overview: The SEC delayed decisions on Solana ETFs until October 2025, citing concerns about investor protections. Meanwhile, Solana is partnering with Dubai’s VARA to develop compliant tokenization frameworks.
What this means: While U.S. regulatory uncertainty continues, Solana is gaining support globally. In 2025, Solana’s price fell 30% when the SEC labeled it a security during the Coinbase lawsuit but later recovered 18% after the Dubai partnership was announced (CoinTelegraph).
Conclusion
Solana’s price will depend on ETF approvals (expected in weeks), how well the network performs after the Alpenglow upgrade (early 2026), and clearer regulations. The SEC’s October 16 ETF decision is key—a green light could bring a surge of investment, while a rejection might push prices down to the $100 support level. So far, SOL is down 37.9% this year, showing caution among investors, but its $9.6 billion in DeFi value points to strong fundamentals. The big question: will institutions see SOL as a “tech stock beta” or a unique crypto asset?
What are people saying about SOL?
The Solana (SOL) community is divided between cautious optimism and technical doubts. Here’s the latest:
- Optimists target a rebound to $160 despite some weak network signals
- Pessimists warn of a drop below $118 due to weak momentum
- Experts disagree on whether SOL can maintain key price levels
In-Depth Look
1. @bpaynews: Recovery Depends on $118 Support — Mixed Outlook
"SOL price prediction suggests a possible bounce from $125 support toward the $160-175 range, but falling below $118 could lead to a deeper drop to around $100."
– @bpaynews (2K followers · 419K impressions · 2025-12-20 13:23 UTC)
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What this means: Traders are cautiously hopeful. They see a chance for SOL to bounce back but only if it stays above the $118-$125 range. Currently, SOL is priced at about $121.90, down 38% compared to last year.
2. @RipBullWinkle: Technical Warning with Death Cross — Bearish Signal
"MA20 ($131.80) is below MA50 ($140.10), indicating a bearish crossover. RSI at 41 and price below key moving averages suggest the downtrend may continue unless SOL breaks above $126.38."
– @RipBullWinkle (130K followers · 96K impressions · 2025-12-21 17:20 UTC)
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What this means: Technical analysts see a “death cross” — a sign that the price trend might weaken further. However, the Relative Strength Index (RSI) at 41 suggests SOL is somewhat oversold, which could allow for short-term price rebounds.
3. @DriftProtocol: DeFi Growth Backs Bullish Outlook
"Sentiment check: bullish on Solana ✅"
– @DriftProtocol (132K followers · 11K impressions · 2025-07-17 12:12 UTC)
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What this means: Developers and users remain confident. Solana’s decentralized finance (DeFi) total value locked (TVL) increased by 32.7% quarter-over-quarter to $11.3 billion (DefiLlama), although this is still 60% below its peak in 2024.
Conclusion
The outlook for Solana is mixed. On one hand, strong developer activity with 14.6 million daily active addresses shows ongoing interest. On the other, the price has dropped 10.67% over the past month, raising concerns. The key support zone between $118 and $125 is critical—falling below this could confirm bearish trends, while holding above it might spark a recovery. With trading volume at just 2.8%, indicating low liquidity, expect price swings to be more pronounced in either direction.
What is the latest news about SOL?
Solana is showing mixed signals: while ETF investments are coming in despite price drops, new partnerships suggest promising future growth. Here’s the latest update:
- Solana ETFs See Inflows Despite Market Downturn (December 25, 2025) – Solana ETFs gained $1.48 million even as Bitcoin and Ethereum ETFs lost money.
- Layer-1 Tokens Face Challenges, SOL Down Nearly 36% This Year (December 25, 2025) – Solana’s price has dropped significantly, underperforming many other blockchain projects.
- Growth in Asset Tokenization Supports Solana (December 25, 2025) – Experts highlight Solana’s role in fast trading and increasing tokenized assets.
In-Depth Look
1. Solana ETFs See Inflows Despite Market Downturn (December 25, 2025)
Summary:
On December 24, while Bitcoin and Ethereum ETFs experienced large withdrawals ($175 million and $52.7 million respectively), Solana spot ETFs attracted $1.48 million in new investments. This suggests some investors see Solana as a good value after its price dropped 53% since October.
What this means:
This is a cautiously positive sign for Solana. Even though the price has been weak, steady ETF inflows show that institutional investors still believe in Solana’s long-term potential, especially in areas like decentralized exchanges and tokenization. However, Solana’s price remains low at $122.32, down 37% compared to last year. (CoinMarketCap)
2. Layer-1 Tokens Face Challenges, SOL Down Nearly 36% This Year (December 25, 2025)
Summary:
Solana is among the worst-performing major Layer-1 blockchain tokens in 2025, with a 35.9% drop year-to-date. Only Binance Coin (BNB) and TRON (TRX) have seen gains, according to Castle Labs data.
What this means:
This reflects a broader negative trend for high-speed blockchain networks. Solana’s poor performance is linked to a 33% decline in decentralized finance (DeFi) activity since October and reduced interest in meme coins. The price of SOL is testing important support levels between $118 and $122, a range it has struggled to hold since November. (Binance)
3. Growth in Asset Tokenization Supports Solana (December 25, 2025)
Summary:
Rob Hadick from Dragonfly Capital highlighted Solana’s advantages in high-frequency trading and tokenized assets during a CNBC interview. Solana currently hosts $15.9 billion in tokenized assets, which is less than Ethereum’s $183.7 billion but growing much faster at 140% year-to-date.
What this means:
This is a positive sign for Solana’s long-term outlook. Its fast transaction speed (1,039 transactions per second) and very low fees ($0.00038 per transaction) make it attractive for institutional investors interested in tokenization. Partnerships like Visa’s integration of USDC payments and Fidelity’s filing for a Solana ETF support this growth story. (Binance)
Conclusion
Solana is balancing steady institutional interest through ETFs with ongoing price challenges. The rise of asset tokenization could be a key driver for future growth. The big question remains: will increasing ETF investments help close the gap between Solana’s real-world use and its current low price?
What is expected in the development of SOL?
Solana’s roadmap is focused on improving speed, attracting big institutions, and building better tools for developers.
- Alpenglow Upgrade (Q1 2026) – Faster transaction finality at 150 milliseconds.
- Firedancer Validator Client (Live) – Increased network capacity with over 1 million transactions per second (TPS).
- SIMD-0266 Token Efficiency (2025) – Cuts token operation costs by 98%.
- Institutional Integrations (Ongoing) – Partnerships with Visa, ETFs, and enterprise tools.
Deep Dive
1. Alpenglow Upgrade (Q1 2026)
Overview: The Alpenglow upgrade aims to speed up how quickly transactions are confirmed on Solana—from about 12 seconds down to just 150 milliseconds. It does this by removing an older timing system called proof-of-history and simplifying how validators (the network’s computers that confirm transactions) agree on the state of the blockchain (Blockworks).
What this means: This is good news for Solana (SOL) because faster transaction times could attract users who need quick payments or high-frequency trading. However, there’s a risk that smaller validators might find it harder to keep up if the new system requires more powerful hardware, which could reduce decentralization.
2. Firedancer Validator Client (Live)
Overview: Firedancer is a new version of Solana’s validator software developed by Jump Crypto. It’s designed from the ground up to be more efficient. Tests show it can handle over 1 million transactions per second on standard hardware, which helps the network scale better (Yahoo Finance).
What this means: This upgrade is generally positive because it boosts the network’s capacity. However, its success depends on validators switching to this new software. Other validator clients like Jito-Solana and Sig add backup options, which helps keep the network stable.
3. SIMD-0266 Token Efficiency (2025)
Overview: This upgrade introduces a new token standard that reduces the computing power needed for token operations by 98%, freeing up about 12% of block space. It works with existing SPL tokens and allows more complex decentralized finance (DeFi) actions with fewer steps (U.Today).
What this means: This is a big plus for DeFi on Solana, as it lowers fees and improves liquidity. The main challenge is getting developers to adopt the new standard, which could take time if the tools to help with migration aren’t ready.
4. Institutional Integrations (Ongoing)
Overview: Visa now processes USDC stablecoin payments on Solana, handling about $3.5 billion annually. Additionally, spot ETFs like Bitwise’s $BSOL manage $747 million in assets. Solana Permissioned Environments (SPEs) allow businesses to run customized, compliant versions of Solana’s virtual machine (CoinMarketCap).
What this means: These partnerships strengthen Solana’s position in stablecoins and regulatory compliance. However, if ETF investments decline or SPE adoption is slow, it could hurt growth.
Conclusion
Solana’s 2026 plans focus on becoming a fast, reliable platform for finance through the Alpenglow and Firedancer upgrades. Meanwhile, SIMD-0266 and institutional partnerships aim to boost its role in decentralized and traditional finance. With Visa and ETF support, the question remains: can Solana maintain its roughly 35% share of the stablecoin market as Ethereum’s layer-2 solutions continue to grow?
What updates are there in the SOL code base?
Solana’s latest updates focus on making the network faster, more scalable, and easier for developers to use.
- Firedancer Mainnet Launch (December 2025) – Jump Crypto’s new validator client aims to handle over 1 million transactions per second (TPS).
- Alpenglow Consensus Upgrade (September 2025) – Cuts transaction finality time to just 150 milliseconds.
- Efficient Token Program (October 2025) – Slashes token operation costs by 98%.
Deep Dive
1. Firedancer Mainnet Launch (December 2025)
What it is: Firedancer is a new validator client created by Jump Crypto that recently launched on Solana’s mainnet. Validators are the computers that help process and confirm transactions on the network. Firedancer adds diversity to Solana’s validator software, reducing dependence on a single system. It’s designed to handle over 1 million transactions per second by using advanced data processing techniques.
Why it matters: This upgrade makes Solana’s network more reliable and able to handle more activity, which is important as decentralized finance (DeFi) and real-world asset (RWA) applications grow. (Source)
2. Alpenglow Consensus Upgrade (September 2025)
What it is: The Alpenglow upgrade drastically speeds up how quickly transactions are finalized—from 12 seconds down to just 150 milliseconds—by moving some validator voting off the blockchain. It also introduced Validator Admission Tickets to reduce network congestion and lower costs for those running validator nodes. Plus, the network can now keep running smoothly even if 40% of validators go offline.
Why it matters: Faster transaction finality improves the user experience for trading and payments. Lower costs encourage more people to run validators, which helps keep the network decentralized and secure. (Source)
3. Efficient Token Program (October 2025)
What it is: This upgrade replaces Solana’s existing SPL token standard with a new “p-token” system that reduces the computing power needed for token transfers by 98%. It also frees up about 12% of block space, allowing for more complex DeFi activities and making it easy for existing tokens to switch over.
Why it matters: Lower fees and higher throughput make Solana more attractive for apps that require fast, frequent transactions, including those used by institutions. (Source)
Conclusion
Solana’s recent code updates focus on improving speed, scalability, and cost efficiency, positioning it as a strong blockchain platform for wider adoption. With Firedancer and Alpenglow boosting network performance and decentralization, and p-tokens optimizing resource use, Solana is well-positioned to maintain its lead in developer activity and institutional interest.