Solana (SOL) Eyes $300 Amid TradFi and DeFi Boost
Solana's Push Towards $300: Factors at Play
Solana's native token, SOL, experienced a correction after approaching $250, yet remains up 24% over the last 30 days, supported by robust on-chain activity. Traders are assessing if current trends can propel SOL towards $300, particularly with Solana leading in decentralized exchange (DEX) volumes.
Key Catalysts:
- Corporate Treasury Demand: Investments from corporate treasuries are providing consistent buying pressure, bolstering SOL's price.
- DEX Dominance: Solana has surpassed Ethereum in DEX trading volume, processing $121.8 billion in monthly volume—roughly 90% more than BNB Chain.
- Fee Growth: Increased DEX volume translates to higher fees, generating recurring demand for SOL used to pay for transactions.
- Interoperability: Proposed bridges, like the one connecting Solana and Coinbase's Base, promise increased asset movement and ecosystem connectivity.
In September, Solana overtook Ethereum as the top blockchain for DEX trading. Leadership in this area is crucial as it boosts fees, which, in turn, drives demand for SOL.
Fee Growth and TVL
Nansen data indicates that fees on Solana have risen 23% over the past seven days. This increase is noteworthy given that Ethereum has significantly more total value locked (TVL). However, ETH holders see limited benefits due to lower turnover and weak fee generation from many decentralized applications.
Corporate Treasury Allocations Driving SOL Demand
Recent corporate treasury activity has spurred demand for SOL. Companies are allocating capital raised through stock or debt offerings to cryptocurrency, including SOL. Forward Industries (FORD), for example, reportedly raised $1.65 billion and used a portion to acquire SOL for its reserves. This was financed by firms like Galaxy Digital, Jump Crypto, and Multicoin Capital.
Furthermore, DeFi Development Corp disclosed holdings exceeding 2 million SOL, valued at over $460 million. Pantera Capital has also launched a new Solana-backed treasury vehicle, Helius (HSDT), with an initial private placement of $500 million, potentially expanding to over $1 billion.
Interoperability and Ecosystem Expansion
The proposed open-source bridge between Solana and Base, an Ethereum layer-2 network developed by Coinbase, presents another potential tailwind. Base boasts over 20 million active addresses in 30 days, according to Nansen. This bridge would enable users to transfer assets across chains, fostering a more connected ecosystem.
World Liberty Financial (WLFI), a Trump-backed crypto initiative, has also partnered with Solana’s memecoin platform Bonk.fun and the Raydium DEX to fund “multimillion-dollar promotional rewards” targeting USD1 stablecoin pairs.
Given Solana’s expanding on-chain activity and accumulation by treasury-focused firms, analysts suggest that conditions favor further upside. A rally to $300 would give Solana a $163 billion market cap, representing a 70% discount to Ether’s $543 billion valuation.