Solana (SOL) has re-emerged as a dominant force in the blockchain ecosystem, with its native token showing strong signs of a sustained price rebound. From surging total value locked (TVL) to rising transaction fee revenue and healthy derivatives market sentiment, the network is demonstrating robust on-chain fundamentals. As broader altcoin markets respond positively to Bitcoin’s rally past $100,000, Solana stands out not just in market capitalization—but in real, measurable activity.
With SOL climbing 24.8% between May 6 and May 10, the momentum reflects more than speculative enthusiasm. It underscores growing confidence in Solana’s infrastructure, developer adoption, and DeFi innovation. While the price struggles to hold above $180, chain data and derivatives metrics suggest further upside potential remains intact.
Solana’s TVL Dominance Over Ethereum Layer-2 and BNB Chain
Despite ranking fifth in market cap among cryptocurrencies, Solana leads in key performance indicators—most notably total value locked (TVL). At $10.9 billion, Solana's TVL now surpasses the combined TVL of the entire Ethereum Layer-2 ecosystem, including major scaling solutions like Arbitrum, Optimism, and Base.
This milestone highlights Solana’s growing appeal to liquidity providers and yield-seeking investors. Even BNB Chain, which benefits from deep integration with Binance and Trust Wallet, fails to match Solana’s DeFi traction.
Notable growth has been observed across several core protocols:
- Raydium, a leading decentralized exchange, saw its TVL surge by 78% over the past 30 days.
- Jito, a liquid staking solution, experienced a 41% increase.
- Marinade Finance, another major liquid staking platform, grew by 56%.
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These gains reflect increasing trust in Solana’s speed, low fees, and developer tooling—factors that continue to attract new users and capital.
Rising Fee Revenue Fuels SOL Demand
One of the most telling indicators of network health is on-chain fee generation. Unlike some blockchains where low fees can signal weak economic activity, Solana strikes a balance—processing high volumes at minimal cost while still generating substantial revenue.
Over the last 30 days, Solana generated $43.4 million in transaction fees—up 109% from the previous month. This growth outpaces even high-throughput chains like Tron, which recorded $51.9 million, while Ethereum’s base layer lagged behind at $24.9 million during the same period.
The upward trend in both DApp revenue and network fees indicates increased usage across decentralized applications—from swaps and lending platforms to NFT marketplaces and gaming ecosystems. These activities directly contribute to demand for SOL, as users must pay transaction fees in the native token.
Moreover, with approximately 65% of the circulating SOL supply staked, selling pressure remains low. This combination of rising utility and limited sell-side pressure creates a favorable environment for price appreciation.
Derivatives Data Shows Healthy Bullish Sentiment
To gauge trader sentiment beyond spot prices, analysts often turn to perpetual futures markets—particularly funding rates. A positive funding rate means long-position holders (bulls) are paying short-sellers to keep their leveraged positions open, indicating strong demand for upside exposure.
Currently, SOL perpetual futures carry an annualized funding rate of 8%. This falls within the 5%–10% neutral-to-bullish range based on typical capital costs—suggesting strong but not excessive leverage.
While this reflects optimism, it doesn’t indicate overheated speculation. After all, SOL is still trading about 40% below its all-time high of $295 set on January 19. Compared to previous rallies where funding rates spiked above 15%, today’s levels suggest a more sustainable buildup.
This measured bullishness, combined with growing on-chain activity, increases the likelihood of a breakout toward the $200 resistance level—and potentially beyond.
What Could Trigger the Next Leg Up?
While technical and on-chain indicators are promising, investors are watching for potential catalysts that could accelerate SOL’s price trajectory.
One major possibility is the approval of a spot Solana exchange-traded fund (ETF) in the United States. Following the landmark approval of spot Bitcoin ETFs in early 2024, institutional interest has shifted toward other top-tier assets. Analysts believe Solana is among the most likely candidates for ETF consideration due to its strong fundamentals and growing regulatory clarity.
Additionally, there's growing speculation that Solana could be included in national digital asset strategic reserves. Countries exploring blockchain-based treasury diversification may view Solana’s performance, scalability, and energy efficiency as compelling advantages.
Another long-term driver is the tokenization of real-world assets (RWAs) on Solana. The network’s speed and low cost make it ideal for issuing tokenized stocks, bonds, and private equity. Several fintech startups are already building RWA platforms on Solana, potentially unlocking billions in institutional capital.
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FAQ: Common Questions About Solana’s Price and Network Growth
Q: Why is Solana’s TVL higher than Ethereum Layer-2 solutions?
A: Solana offers faster transactions and lower fees compared to most Ethereum L2s, making it attractive for DeFi users. Additionally, its mature ecosystem of yield-generating protocols encourages greater capital deployment.
Q: Does high fee revenue always lead to higher token prices?
A: Not always—but when combined with limited token circulation and strong staking participation (like with SOL), fee growth can directly support price appreciation by increasing utility and reducing sell pressure.
Q: Is an 8% funding rate bullish or a warning sign?
A: An 8% annualized rate is bullish but sustainable. It reflects healthy demand without extreme leverage that could lead to a sudden liquidation cascade.
Q: Could a spot SOL ETF really happen in 2025?
A: While no guarantees exist, increasing regulatory engagement and institutional interest make it a realistic possibility—especially if issuers file formal applications with the SEC.
Q: How does staking affect SOL’s price?
A: With 65% of supply staked, fewer tokens are available for sale on exchanges. This scarcity can amplify price movements during periods of rising demand.
Q: What risks should investors watch for?
A: Network outages remain a historical concern, though improvements in decentralization and uptime have reduced frequency. Regulatory scrutiny and competition from other high-performance chains are also factors to monitor.
Final Outlook: Momentum Building for SOL
Solana is no longer just a fast blockchain—it's becoming a central hub for DeFi innovation, NFT trading, and real-world asset tokenization. The convergence of rising TVL, growing fee income, healthy derivatives positioning, and potential regulatory catalysts paints a compelling picture for SOL’s future.
While short-term volatility may persist around the $180 mark, the underlying data suggests that this rally is built on stronger foundations than previous cycles. As more developers build on Solana and institutions explore exposure through ETFs or direct investment, the network is well-positioned for sustained growth.
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For investors focused on long-term value creation rather than short-term speculation, Solana’s current trajectory offers both opportunity and confidence grounded in measurable on-chain progress.
Core Keywords: Solana, SOL price, DeFi activity, total value locked (TVL), blockchain network, fee revenue, staking, spot ETF