Solana is leading a fresh attempt at market recovery,
largely boosted by the latest development involving Trump tariffs and
institutional adoption of the digital asset.
Besides that, whale activity and renewed institutional
interest are now combining to stir optimism among traders, even as Solana’s
price remains well below recent highs. Despite SOL’s recent price decline, down nearly 5%
between April 10 and April 11, on-chain data shows the Solana network is far
from slowing down.
Solana’s Total Value Locked Soars
Total value locked (TVL) in Solana-based applications
hit 57 million SOL on April 11, up 70% from $9 million in November last year,
according to data from DefiLlama.
Decentralized exchange (DEX) volumes have also
remained strong. Solana now accounts for 24% of the DEX market, double that of
BNB Chain and more than twice the share of Base, one of Ethereum‘s top layer-2
networks.
Although the technical indicators show that Solana is still facing bearish momentum, it is currently trading at a key level of 120. The price is currently below the 50 and 200 moving averages. The Relative Strength Index (RSI) is currently at 47, meaning the token is below the overbought zone and could rise further before any trend reversal. Past the current level, the other levels to watch are $147 and $160.
Three Catalysts Fueling Bullish Sentiment
Additionally, and perhaps most notably, the race to launch
the first spot Solana ETF in the U.S. has intensified. The Cboe BZX Exchange
recently filed to list Fidelity’s proposed ETF, joining Franklin Templeton and
other major asset managers in pursuit of regulatory approval.
Fidelity Solana ETF 19b-4 officially filed.. pic.twitter.com/pPVXa1T63z
— Eric Balchunas (@EricBalchunas) March 25, 2025
CME’s launch of Solana futures in March further points
to growing institutional demand. The changing regulatory climate in Washington may
prove decisive. The SEC, long cautious about altcoin-based ETFs, approved
several spot Bitcoin ETFs earlier this year.
Regulatory Shift Opens the Door for SOL ETFs
With crypto regulation seemingly softening under a
second Trump administration, the path appears clearer for products tied to
other digital assets.
Fidelity’s push for a Solana ETF aligns with its
broader crypto strategy. The price prediction of $1000 largely depends on
Solana’s fundamental development, its adoption, and the performance of the
overall digital asset market.
Already managing Bitcoin and Ethereum ETFs, the firm’s
move could bring Solana exposure to a wider pool of investors—without requiring
them to hold the asset directly.
This article was written by Jared Kirui at www.financemagnates.com.
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