Analysis | Why Has the Solana Price Risen by 50% in a Month?
The price of Solana (SOL) has surged by more than 50% over the past month, making it one of the best-performing altcoins in July. The price rose from around $125 in early June to peaks above $190 in early July. This rally raises the question: what‘s behind this momentum? And could this just be the beginning?
Several analysts suggest that the SOL chart is forming a so-called “cup and handle” pattern, named after its resemblance to a teacup with a rounded base and a sharp rise forming the handle. This formation is typically viewed as a signal that the bullish trend may continue. The $155 resistance has already been breached; a move past $250 would confirm the pattern.
1. Solana ETFs Could Become Reality
Following the approval of spot Bitcoin ETFs in early 2024 — and more recently Ethereum ETFs — investors are speculating which crypto asset could be next. Solana is frequently mentioned as a strong candidate. Major asset managers like BlackRock and VanEck have referred to Solana in interviews and documentation as a "robust and scalable Layer 1". While no formal ETF application has yet been filed, speculation alone is fuelling positive market sentiment.
2. Stablecoin Transactions Surge
Notably, Solana processed more stablecoin transactions than Ethereum on several days in July — a significant milestone. Active addresses on the Solana network also rose by 9% on Monday. USDC usage has increased sharply, thanks to Solana‘s ultra-low transaction costs (often under $0.001) and lightning-fast processing speeds. For developers and users of financial apps like wallets, payment solutions, and DeFi protocols, this is a major advantage. Rising stablecoin volume indicates growing real-world network usage rather than just speculative trading.
3. Expanding Ecosystem: From DePIN to Payments
Solana‘s ecosystem is growing across multiple fronts. Helium, the decentralised wireless IoT network (DePIN), has fully migrated to Solana due to its scalability. Render Network, focused on AI-powered rendering for creative industries, also runs on Solana, adding further diversity to its use cases. Meanwhile, Solana Pay continues to push for crypto payments in retail and e-commerce, and was recently integrated into Shopify. These projects attract not only developers, but also capital and active users. Solana is increasingly positioning itself as more than just an Ethereum alternative — it's evolving into a comprehensive infrastructure layer across various sectors. This strengthens network effects and long-term investor confidence.
4. Solana Blockchain‘s Total Value Locked Grows
Solana‘s Total Value Locked (TVL) — representing the total assets locked in the ecosystem — hit $10.3 billion on Monday, the highest level in six months. That marks a 63% increase since early April. This makes Solana the second-largest blockchain by TVL, capturing a 6.28% market share. Ethereum remains the leader with about 68% of total DeFi value.
Disclaimer: This is not financial advice. Always conduct your own research and consult with a financial professional.
Price Analysis: Key Levels to Watch
At the end of June, Solana broke through a key resistance level near $140, which had acted as a ceiling since March. Since then, the uptrend has accelerated, forming higher highs and higher lows — classic bullish behaviour. The $160 range acted as a short-term consolidation zone, followed by another push towards $190. Currently, the $200 area forms a psychological barrier. If Solana breaks above it, the path could open toward previous highs around $210–$215. On the downside, the $165–$170 range is seen as a critical support zone.Several analysts suggest that the SOL chart is forming a so-called “cup and handle” pattern, named after its resemblance to a teacup with a rounded base and a sharp rise forming the handle. This formation is typically viewed as a signal that the bullish trend may continue. The $155 resistance has already been breached; a move past $250 would confirm the pattern.
Fundamental Drivers Behind the Rally
Solana‘s strong July performance is not solely driven by technical momentum. There are also major developments within the ecosystem that are boosting investor confidence.1. Solana ETFs Could Become Reality
Following the approval of spot Bitcoin ETFs in early 2024 — and more recently Ethereum ETFs — investors are speculating which crypto asset could be next. Solana is frequently mentioned as a strong candidate. Major asset managers like BlackRock and VanEck have referred to Solana in interviews and documentation as a "robust and scalable Layer 1". While no formal ETF application has yet been filed, speculation alone is fuelling positive market sentiment.
2. Stablecoin Transactions Surge
Notably, Solana processed more stablecoin transactions than Ethereum on several days in July — a significant milestone. Active addresses on the Solana network also rose by 9% on Monday. USDC usage has increased sharply, thanks to Solana‘s ultra-low transaction costs (often under $0.001) and lightning-fast processing speeds. For developers and users of financial apps like wallets, payment solutions, and DeFi protocols, this is a major advantage. Rising stablecoin volume indicates growing real-world network usage rather than just speculative trading.
3. Expanding Ecosystem: From DePIN to Payments
Solana‘s ecosystem is growing across multiple fronts. Helium, the decentralised wireless IoT network (DePIN), has fully migrated to Solana due to its scalability. Render Network, focused on AI-powered rendering for creative industries, also runs on Solana, adding further diversity to its use cases. Meanwhile, Solana Pay continues to push for crypto payments in retail and e-commerce, and was recently integrated into Shopify. These projects attract not only developers, but also capital and active users. Solana is increasingly positioning itself as more than just an Ethereum alternative — it's evolving into a comprehensive infrastructure layer across various sectors. This strengthens network effects and long-term investor confidence.
4. Solana Blockchain‘s Total Value Locked Grows
Solana‘s Total Value Locked (TVL) — representing the total assets locked in the ecosystem — hit $10.3 billion on Monday, the highest level in six months. That marks a 63% increase since early April. This makes Solana the second-largest blockchain by TVL, capturing a 6.28% market share. Ethereum remains the leader with about 68% of total DeFi value.
Why Is Solana So Popular?
What makes Solana stand out is its combination of low fees, high speed, and a thriving ecosystem. While Ethereum struggles with congestion and high gas fees, Solana provides a scalable, fast alternative. Past issues with downtime appear to be resolved, restoring faith in its technical infrastructure. Solana also appeals to developers thanks to its accessible build environment, and to users due to quick, affordable transactions. This makes it particularly competitive in sectors like gaming, DeFi, and payments.Outlook: Can the Rally Continue?
If Solana breaks above $200, momentum could accelerate towards $220–$240. Beyond that, the all-time highs near $260 may come back into view. Caution is still warranted: much of the recent rally is driven by sentiment and ETF speculation. A short-term correction is possible. But if the underlying fundamentals continue to strengthen, Solana could cement itself as a top-3 altcoin with long-term potential.Disclaimer: This is not financial advice. Always conduct your own research and consult with a financial professional.