Solana processes 65,000 transactions per second, which makes it a powerful player in the cryptocurrency market. This is a big deal as it means that Solana outperforms Ethereum’s 15–30 TPS. The platform’s attention is drawn to over 1 million active addresses that generate daily trading volumes above $1 billion. Solana’s NFT market reached a major milestone at the end of 2023 with total sales exceeding $1 billion, securing its position as the second-largest NFT platform after Ethereum. Recent market developments have propelled substantial growth in the crypto sector. Former President Trump’s announcement about creating a strategic crypto reserve pushed Bitcoin above $94,000, which created ripple effects throughout the market. These market movements point to a pivotal moment in Solana’s journey ahead.
US Investors Pour $2B into Solana Within 24 Hours
Solana has caught the eye of big investment firms lately. A CoinShares survey shows a remarkable transformation in how these firms invest their money. Asset managers who control USD 600 billion now keep Solana in their portfolios — about 15% of them. That’s quite a jump from zero holdings back in January1. The survey also revealed that 14% of big investors see Solana as the digital asset with the best growth ahead2.
The price swings since early 2025 tell a different story though. Even with USD 10 billion in new money flowing in, Solana’s price dropped by 29%3. The ecosystem also saw USD 9.50 billion worth of fresh USDC stablecoins enter since January 1, 20253.
Recent events have really shaped the market’s behavior. Much of the new money went into meme coins instead of helping SOL’s price stay steady. The Official Trump token’s launch saw SOL’s value drop from USD 261.00 to USD 133.00 — a 49% fall4.
Big investors haven’t lost faith though. Right now, 96% of Coinbase users are buying more Solana5. They’re drawn to its quick and cheap transactions. This tech edge makes it a favorite among institutional investors, who keep adding more to their portfolios1.
The next big test comes with a token unlock event. About 15 million SOL tokens worth around USD 7 billion will hit the market over three months15. Galaxy’s managing director tried to calm nerves by pointing out this only makes up 2.31% of all tokens and market value15.
Looking at the bigger picture, Solana lost USD 485 million in February as investors moved their money to Ethereum, Arbitrum, and the BNB Chain3. This move happens as crypto investors lean toward safer bets, with Bitcoin now taking up 59.6% of the market — up by 1%3.
Technical Indicators Signal Strong Breakout Above $200
Technical analysis shows a compelling pattern as Solana maintains a USD 94.00 billion market capitalization7. The cryptocurrency displays a descending broadening wedge pattern that traditionally signals a bullish indicator and suggests an imminent breakout7.
Substantial buying pressure dominates the 4-hour chart, and the Relative Strength Index (RSI) stays consistently above the 50% threshold7. The RSI reads 41, which signals potential room for growth before reaching overbought conditions8. Capital inflows into SOL strengthen as the Chaikin Money Flow (CMF) stands at 0.278.
The price chart reveals a crucial Adam and Eve pattern with its neckline near USD 198.007. SOL’s price has broken above both the 50-EMA line and the 23.6% Fibonacci level at USD 196.367. Strong support persists above the 50-hour EMA line that reinforces the likelihood of upward momentum7.
Major resistance levels pose challenges at USD 220.008. A breakthrough above this mark could spark a significant rally toward USD 250.00, potentially extending to USD 300.008. The price might retest USD 180.00 if it fails to hold the USD 200.00 support8.
Bullish signals emerge as the Money Flow Index (MFI) recovers from oversold territory, while the Moving Average Convergence Divergence (MACD) shows positive readings9. The Parabolic Stop-and-Reverse (SAR) indicator’s dots below current price levels further support this bullish outlook9.
Technical patterns point to Solana testing resistance near USD 215.007. A bullish breakout from the wedge pattern could push prices to USD 263.00 by January 20257. Market recovery predicted in Q1 2025 aligns with Fibonacci levels that suggest a new all-time high target at USD 286.857.
Asian Markets React to Solana’s Price Surge
Asian cryptocurrency markets actively trade Solana as its price keeps moving. Upbit, South Korea’s largest cryptocurrency exchange, leads the market with more than 180 listed cryptocurrencies and 300 trading pairs10. The exchange helps enable large trading volumes across the region through its advanced security protocols and AI-powered monitoring systems10.
Chinese investors trade actively through alternative channels despite official restrictions on cryptocurrency trading. These traders make up about 20% of total trading volume on major exchanges. Their turnover reached USD 90 billion on Binance alone in May 20236. Traders prove the market’s resilience as they use VPN services and offshore platforms to maintain their cryptocurrency positions6.
South Korea’s exchanges display unique trading patterns. WOO recorded USD 118 million in volumes within 24 hours, which exceeded both Ethereum and Solana trading volumes11. The country’s second-largest exchange, Bithumb, handles transactions over USD 1 trillion through its eight million registered users11.
Chinese trading activities clearly affect local markets. Hong Kong serves as a strategic gateway while mainland investors look for growth opportunities amid traditional market uncertainties. Chinese citizens use their yearly foreign currency allowance of USD 50,000 to access cryptocurrency markets through Hong Kong-based exchanges6.
Solana’s decentralized exchange (DEX) volume has reached USD 1.4 billion, which represents 18.4% dominance across all blockchains12. Solana’s price movements in Chinese markets reflect broader market sentiment, with 1 SOL trading at ¥882.9213. The cryptocurrency saw major price swings and reached a weekly high of ¥1,059.98 before settling at current levels13.
Government oversight in South Korea directly shapes exchange operations and trading patterns14. Chinese investors increasingly use social networks like WeChat and Telegram. They create specialized groups to handle cryptocurrency trading6.
Conclusion
Solana’s remarkable trip through early 2025 shows its growing importance in the digital world. The platform processes 65,000 transactions per second, which showcases its technical edge. This technical advantage has led institutional investors to pour $2 billion into SOL within 24 hours. Market indicators suggest a strong breakout above $200. Asian markets show high activity through major exchanges like Upbit and Bithumb.
Some challenges exist for Solana. The platform faces an upcoming 15 million token unlock and recent price swings. However, institutional confidence stays strong. Solana’s growing ecosystem has over 1 million active addresses. The daily trading volumes that exceed $1 billion prove its strength in the cryptocurrency market. The platform’s technological advantages and solid market presence point to a bright future. Market changes and increased institutional adoption continue to support this innovative blockchain platform’s growth.
References
[1] — https://cointelegraph.com/news/solana-dramatic-increase-institutional-portfolios-coinshares
[2] — https://cryptonews.com.au/news/coinshares-survey-shows-dramatic-increase-in-institutional-solana-holders-120268/
[3] — https://cointelegraph.com/news/solana-price-down-29-2025-liquidity-surge-us-crypto-stockpile
[4] — https://finance.yahoo.com/news/solana-drops-29-2025-despite-075629963.html
[5] — https://www.coinbase.com/price/solana
[6] — https://crypto.news/chinese-traders-prosper-despite-crypto-ban-here-is-how-they-evade-it/
[7] — https://thecryptobasic.com/2024/12/25/solana-eyes-200-breakout-is-a-parabolic-run-to-263-imminent/
[8] — https://coingape.com/markets/will-solana-price-hold-above-200-as-market-faces-corrections/
[9] — https://www.ccn.com/analysis/crypto/solana-price-rejected-indicators-favor-recovery/
[10] — https://coinmarketcap.com/exchanges/upbit/
[11] — https://woox.io/blog/woo-outpaces-eth-and-solana-trading-volume-on-south-koreas-2nd-largest-exchange
[12] — https://www.coingecko.com/en/exchanges/decentralized/solana
[13] — https://www.coingecko.com/en/coins/solana/cny
[14] — https://cointelegraph.com/rankings/crypto-exchanges/?country=south-korea
[15] — https://www.ainvest.com/news/solana-2b-unlock-looms-hold-short-sell-sol-2502/