Solana's $137B Market Cap: Is SOL Overvalued?

Solana Market Cap Reaches All-Time High Amid Price Volatility

Solana [SOL] recently achieved a market capitalization of $137 billion, reaching $250 for the first time since Q1 2025. This milestone comes even as SOL's price remains approximately 15% below its all-time high, raising questions about whether the asset is overvalued.

Key Factors Driving Solana's Valuation

The surge in Solana's market cap is largely attributed to increased circulating supply resulting from significant token unlocks earlier in the year. Approximately 89% of Solana’s total supply (around 543 million SOL) is currently liquid.

• Token Unlocks: The market has absorbed the majority of supply-side risk associated with earlier token unlocks, including a substantial release linked to FTX.
• Reduced Supply Pressure: Remaining unlocks are minimal, averaging just 12.7k per month, potentially setting the stage for a supply shock.

Analyzing On-Chain Adoption and Structural Upside

Despite concerns about valuation, Solana's network demonstrates strong fundamentals:

• Staked Value: A record 410 million SOL are currently staked, representing nearly 67% of the total supply.
• Inflation: Solana's annual inflation rate is approximately 4.279% and is designed to gradually decrease over time.

Is Solana Overvalued?

While the market cap increase is partly due to an expanded circulating supply, Solana's strong on-chain adoption and absorbed supply-side risk suggest a robust foundation. A bid-heavy order book further supports price action, indicating a structurally sound environment for potential future growth. Rather than solely reflecting price, Solana’s market cap mirrors the underlying strength of its network fundamentals.