Why did the price of SOL go up?
Solana (SOL) increased by 1.01% in the past 24 hours, outperforming the overall crypto market, which rose 0.56%. Although SOL is still down 13.1% over the past month, today’s rise is linked to positive developments in decentralized finance (DeFi) and solid technical support. Here are the main points:
- USD+ Stablecoin Launch (Positive) – Streamflow introduced a new yield-generating stablecoin on Solana, which could attract more DeFi users.
- Institutional Liquidity Signal (Positive) – Ondo Finance completed a $500,000 tokenized stock trade on Solana, showing the network’s ability to handle large, traditional financial transactions.
- Technical Rebound (Mixed) – SOL found support at key price levels, but further gains depend on breaking through resistance at $125.50.
Deep Dive
1. USD+ Stablecoin Launch (Positive Impact)
Overview: Streamflow launched USD+, a stablecoin native to Solana that is backed by U.S. Treasury Bills. It offers a daily yield of about 3.6% annually without requiring users to lock up their funds.
Why it matters:
- It attracts investors looking for steady returns, potentially increasing the total value locked (TVL) and transaction activity in Solana’s DeFi ecosystem.
- USD+ can be used across various DeFi applications like lending, payments, and liquidity pools, broadening its usefulness.
- This launch supports Solana’s growing role in tokenizing real-world assets, a market expected to reach $1.6 trillion by 2030 (Boston Consulting Group).
What to watch: Adoption rates on platforms like Kamino and Raydium will be key indicators of success.
2. Institutional Liquidity Signal (Positive Impact)
Overview: Ondo Finance tweeted about a $500,000 trade of tokenized Google stock on Solana, executed with just 0.03% slippage—comparable to traditional finance standards.
Why it matters:
- This shows Solana can handle large trades from institutional investors, which is crucial for wider blockchain adoption.
- It reinforces Solana’s position as a platform for tokenized stocks and ETFs, a market projected to grow to $10 trillion by 2030 (21Shares).
- This contrasts with the struggles of other cryptocurrencies like Dogecoin, which has seen much smaller ETF inflows, highlighting Solana’s stronger fundamentals.
3. Technical Rebound (Mixed Impact)
Overview: SOL’s price bounced off support levels around $117–$118 (tested twice since December 24) but faces resistance between $125.50 and $126.50, marked by the 50- and 100-day exponential moving averages (EMA).
What this means:
- Positive signs: The MACD indicator turned positive (+0.06658), and the Relative Strength Index (RSI) is neutral at 49, suggesting room for upward movement.
- Risks: Trading volume dropped 59% compared to the previous day, which could weaken momentum. If SOL falls below $117, it might test support near $112.
Key level: Closing above $126.50 could trigger short sellers to cover their positions, potentially pushing the price toward $133 (the 200-day simple moving average).
Conclusion
Today’s price increase reflects growing confidence in Solana’s DeFi innovations and its progress in attracting institutional liquidity, despite cautious sentiment in the broader market. While technical indicators suggest a possible rebound, sustained gains will depend on breaking the $125.50 resistance and strong adoption of USD+.
Key watch: Will SOL close above its 50-day EMA at $124? Doing so could signal a trend reversal and further upside potential.
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What could affect the price of SOL?
Solana’s price outlook is shaped by upcoming technology upgrades and hopes for ETF approval, but it faces challenges from cautious market sentiment.
- Alpenglow Upgrade (Positive) – Aims to speed up transaction finality to 150 milliseconds by early 2026.
- ETF Approval Outlook (Uncertain) – The SEC is expected to decide on seven ETF applications by late 2025.
- Market Sentiment (Negative) – Crypto markets are currently driven by fear, with reduced liquidity in altcoins.
Deep Dive
1. Alpenglow Upgrade (Positive Impact)
What’s happening:
Solana is preparing its biggest update since it launched, called Alpenglow. This upgrade will reduce the time it takes to confirm transactions from over 12 seconds to just 150 milliseconds. It uses new technologies called Votor (which speeds up voting) and Rotor (which speeds up data sharing). Nearly all validators (98%) approved this upgrade in September 2025. Testing will start late 2025, with a full launch expected in early 2026.
Why it matters:
Faster transaction finality can attract more users, especially institutional investors and high-frequency traders who need quick and reliable transactions. This could also help with past issues of network congestion. For example, a previous upgrade in March 2025 that increased block capacity by 20% temporarily boosted Solana’s price by 18%.
2. ETF Approval Outlook (Uncertain Impact)
What’s happening:
There are seven applications for spot Solana ETFs from big firms like VanEck, Fidelity, and Grayscale waiting for approval from the U.S. Securities and Exchange Commission (SEC). Decisions are expected by October 2025. Analysts from Bloomberg estimate a 90% chance these ETFs will be approved, though the SEC is closely reviewing how staking rewards are handled. One ETF, REX-Osprey, launched in July 2025 and currently manages $69.7 million with a 7.3% staking yield.
Why it matters:
If approved, these ETFs could bring significant new investment into Solana, similar to how Bitcoin ETFs attracted billions. For example, an XRP ETF saw $1.1 billion inflows in just 30 days. However, if rejected, Solana could see price drops similar to what happened with Dogecoin ETFs, which lost 20% in a month. The SEC’s stance on staking rewards is a key uncertainty, as limits on these rewards could reduce the potential upside.
3. Market Sentiment & Liquidity (Negative Impact)
What’s happening:
The crypto market is currently in a state of “Extreme Fear,” with the Fear & Greed Index at 28 out of 100. Liquidity for altcoins like Solana has dropped by nearly 62% over the past month. Solana’s price has fallen 38% over the last 60 days, underperforming Bitcoin, which has gained 59% in dominance.
Why it matters:
Lower liquidity means prices can swing more dramatically, especially when large holders (whales) make moves. Solana’s daily trading volume is only 2.4% of its supply, compared to Bitcoin’s 5.1%, making it more vulnerable to big price swings. Until Bitcoin’s dominance falls below 55%, altcoins like Solana may continue to face selling pressure.
Conclusion
Solana’s path in 2026 depends heavily on the successful rollout of the Alpenglow upgrade and the SEC’s ETF decisions in October 2025. However, broader market challenges like risk aversion and low liquidity could delay any price recovery. Investors should watch whether staking-enabled ETFs can boost Solana’s appeal to institutions or if Bitcoin will continue to dominate the market cycle. Keeping an eye on Solana’s support levels around $117–$120 will also be important.
What are people saying about SOL?
The Solana community is divided between optimism and caution. Here’s the key takeaway:
- ETF buzz – Signs point to growing interest from big Wall Street investors
- $125 support level – Traders see this price as crucial for short-term momentum
- Speed advantage – Developers highlight Solana as a leading platform for on-chain financial markets
In-Depth Look
1. @bpaynews: $160-175 Price Target if Support Holds Bullish
"Solana (SOL) could recover to $160-175 by January 2025 if it stays above $125, but falling below $118 might push it down to $100."
– @bpaynews (1,999 followers · 1.23M impressions · 2025-12-20 13:23 UTC)
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What this means: Technical experts believe SOL could bounce back soon if it maintains its current price range, based on past trends from April 2025.
2. @Yuriy_Biko: Bearish Outlook for Altcoins Including Solana Bearish
"It’s too late to short Solana now, but overall market trends favor Bitcoin over alternative coins."
– @Yuriy_Biko (6,971 followers · 12.2K impressions · 2025-12-19 16:42 UTC)
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What this means: Big-picture traders expect money to keep moving away from Solana and other altcoins until Bitcoin dominance peaks, currently at 59.06%.
3. @Raydium: Solana Powers Internet Capital Markets Bullish
"Solana is the fastest-growing blockchain for internet capital markets thanks to its speed, liquidity, and developer community."
– @Raydium (448K followers · 8.9M impressions · 2025-11-24 01:02 UTC)
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What this means: Solana’s high transaction speed (65,000 transactions per second) and very low fees (about $0.00038 per transaction) make it attractive for institutional decentralized finance (DeFi) projects.
Conclusion
The outlook on Solana is mixed. Optimists focus on its potential ETF listing and technological strengths, while pessimists point to weakening price trends and reduced liquidity in altcoins. Keep an eye on the $118-125 support range this week: Holding this level could confirm a rebound, while dropping below it might trigger more selling. Additionally, Solana’s collaboration with Kalshi on prediction markets, which has a volume of $1.04 trillion, shows growing real-world use beyond just trading speculation.
What is the latest news about SOL?
As 2025 wraps up, Solana is making waves in decentralized finance (DeFi) and attracting attention from big institutions. Here’s what’s new:
- USD+ Stablecoin Launch (December 27, 2025) – Streamflow introduced USD+, a Solana-based stablecoin that earns yield backed by U.S. Treasury Bills.
- Wall Street Liquidity Milestone (December 27, 2025) – Ondo Finance successfully traded $500,000 worth of tokenized Google stock on Solana’s blockchain with minimal price difference.
- Kazakhstan Gold Tokenization (December 27, 2025) – Kazakhstan’s central bank started pilot projects to tokenize gold and issue a stablecoin on Solana, supporting its growing $1 billion crypto reserves.
Deep Dive
1. USD+ Stablecoin Launch (December 27, 2025)
What happened:
Streamflow launched USD+, a stablecoin built on Solana that pays holders a daily yield from U.S. Treasury Bills. Unlike many stablecoins where the issuer keeps any earnings, USD+ shares about 3.6% annual yield directly with users. The funds backing USD+ are held by licensed custodians and can be verified on the blockchain.
Why it matters:
This development strengthens Solana’s DeFi ecosystem by combining reliable, institutional-level returns with the flexibility to use USD+ in lending, trading, and payments without locking up funds. Streamflow’s platform supports up to $2.5 billion in total value locked (TVL), showing growing trust in real-world asset integration (crypto.news).
2. Wall Street Liquidity Milestone (December 27, 2025)
What happened:
Ondo Finance showcased Solana’s capability for large-scale, institutional trading by completing a $500,000 trade of tokenized Google stock onchain with just 0.03% slippage—meaning the price difference from traditional markets was very small. This was possible thanks to Solana’s fast transaction speeds (1,700–1,800 transactions per second after recent upgrades) and very low fees (about $0.00038 per transaction).
Why it matters:
This proves Solana can handle big financial trades efficiently, making it a strong platform for tokenizing assets like stocks. Technical analysis shows Solana’s price holding steady near $123, with potential to rise above $126 and possibly reach $140 soon (cryptonews.com).
3. Kazakhstan Gold Tokenization (December 27, 2025)
What happened:
Kazakhstan’s central bank approved pilot programs to tokenize 32 tons of gold reserves on Solana and launch a stablecoin pegged to the local currency, the tenge (called KZTE). This is part of Kazakhstan’s broader strategy to build a $1 billion crypto reserve and follows recent launches of Mastercard-backed stablecoins on Solana.
Why it matters:
This shows that central banks are increasingly using Solana to connect traditional finance with digital assets. With gold prices around $4,540 per ounce, Solana’s role in managing sovereign digital assets could encourage more long-term institutional adoption (CoinMarketCap).
Conclusion
This week, Solana demonstrated its strength in DeFi innovation (USD+), institutional liquidity (Ondo Finance), and global adoption (Kazakhstan). It continues to position itself as a fast, reliable platform for both speculative trading and real-world asset management. With the market’s Fear & Greed Index at 28 (“Fear”), it remains to be seen if Solana’s technical resilience and real-world asset momentum will help it overcome broader market caution in early 2026.
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What is expected in the development of SOL?
Solana’s 2026 roadmap focuses on improving its technology and attracting big investors:
- Alpenglow Upgrade (Early 2026) – Speeds up transaction finality to just 150 milliseconds.
- BAM Launch (Mid-2026) – A new marketplace to make transaction ordering fairer.
- Lightspeed IR Platform (Q1 2026) – A data platform designed for institutional investors.
Deep Dive
1. Alpenglow Upgrade (Early 2026)
Overview:
This major update will reduce the time it takes to finalize transactions from about 12 seconds to just 150 milliseconds by moving some validator processes off the blockchain (VanEck). It also allows multiple leaders to process transactions at the same time, which helps avoid slowdowns.
What this means:
This is good news for SOL holders. Near-instant transaction finality could make Solana a strong competitor to traditional centralized exchanges, especially for fast trading. However, there might be some delays as validators adjust, and short-term instability during the transition.
2. BAM Launch (Mid-2026)
Overview:
Jito Labs is introducing the Block Assembly Marketplace (BAM), a decentralized auction where participants bid to decide the order of transactions. The profits from this process will be shared with validators and stakers (Blockworks).
What this means:
This change aims to make the system fairer by sharing profits that were previously captured by a few elite validators. It could improve network security by aligning incentives better. However, the new economic setup might be confusing for everyday users at first.
3. Lightspeed IR Platform (Q1 2026)
Overview:
In partnership with Blockworks, Solana will launch the Lightspeed IR Platform, a portal for institutional investors that offers real-time blockchain data, governance updates, and compliance tools (Binance Square).
What this means:
This platform is designed to connect Solana’s ecosystem with traditional finance by providing the tools big investors need to evaluate crypto investments. Its success depends on adoption by large asset managers who are considering crypto.
Conclusion
Solana’s 2026 plans focus on faster transaction finality (Alpenglow), fairer profit sharing (BAM), and better tools for institutional investors (Lightspeed IR). Together, these upgrades aim to boost both the network’s technical performance and its appeal to Wall Street. With Solana’s Total Value Locked at $10.1B as of December 2025, the big question is whether these improvements can help SOL reach its 2025 all-time high of $248 amid ongoing market uncertainty.
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What updates are there in the SOL code base?
Solana’s latest updates focus on making the network faster, more secure, and more decentralized.
- Alpenglow Consensus Testing (2025) – Aims to speed up transaction confirmation to just 150 milliseconds.
- SIMD-0256 Block Capacity (July 2025) – Increased block size to handle more transactions at once.
- Firedancer Validator Progress (2025) – Working toward processing over 1 million transactions per second with a new validator client.
- Emergency Security Patch (April 2025) – Quickly fixed a serious bug without any loss of user funds.
In-Depth Look
1. Alpenglow Consensus Testing (2025)
What it is: Alpenglow is an upgrade designed to cut down the time it takes for a transaction to be finalized from about 12 seconds to just 150 milliseconds—almost instant. It replaces Solana’s current system with a hybrid approach that combines off-chain voting by validators and faster data sharing (called Rotor). This reduces network traffic and lowers costs, making it easier for smaller validators to participate.
Why it matters: Faster transaction finality means a smoother experience for users, especially in trading, decentralized finance (DeFi), and gaming. However, until the Firedancer client is fully launched, the network still depends on a single validator client called Agave.
(Source)
2. SIMD-0256 Block Capacity (July 2025)
What it is: This update increased the block capacity by 20%, allowing the network to handle about 1,800 transactions per second (TPS). This is part of Solana’s step-by-step plan to scale up its performance.
Why it matters: Higher capacity helps prevent slowdowns during busy times, supporting growth in real-world assets (RWAs) and DeFi applications. However, the hardware needed to run validators remains a concern for keeping the network decentralized.
(Source)
3. Firedancer Validator Progress (2025)
What it is: Firedancer is a new validator client developed by Jump Crypto, currently in testing. It aims to remove fixed block size limits and reach over 1 million TPS by the end of 2025. This adds a second validator option, reducing dependence on Solana Labs’ Agave client.
Why it matters: Having multiple validator clients improves the network’s resilience. While reaching 1 million TPS is ambitious and may initially require some centralized validators, this development is generally seen as positive.
(Source)
4. Emergency Security Patch (April 2025)
What it is: In April, Solana quickly fixed a critical bug in the Token-2022 standard that could have allowed unlimited token creation. Validators coordinated privately via Discord to apply the patch.
Why it matters: The quick fix protected user funds, but the private coordination raised concerns about how decentralized the network really is.
(Source)
Conclusion
Solana is pushing hard to improve speed and scalability with upgrades like Alpenglow and Firedancer, while keeping security in focus. The network now supports over $1.6 billion in app revenue each quarter but still faces challenges around validator centralization. The big question is whether Firedancer’s full launch in 2025 will open up validator participation without compromising performance.