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Michael Davis
Michael Davis
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Solana (SOL) could be on the cusp of an institutional adoption boom, as the network’s growth accelerates and Wall Street giants line up to launch Solana-based investment products.
Crypto analyst Ali Charts noted the network’s impressive growth trend earlier this year, which, if it plays out further, means the recent bullish SOL price trend could continue.
While Solana has pulled back 33% from last month’s highs to trade below $200 once again, its positive long-term price trend remains intact.
Bitwise, Canary, 21Shares, VanEck, and Grayscale have all filed to set up spot US Solana ETFs and, in the wake of President Trump’s endorsement of the blockchain via the launch of a meme coin on it, institutional interest is set to surge this year.
That much is already evident in the rapid rise in Solana’s open interest, which was last around $5 billion per coinglass.com.
This represents more than a 2x increase compared to the period before Trump’s election victory in November, and nearly a 10x rise relative to the open interest levels observed when SOL’s price peaked above $260 in 2021.
Growing open interest in the futures market is suggestive of increased institutional adoption because futures are a more sophisticated financial instrument normally employed by more sophisticated (i.e. institutional) traders.
VanEck recently released a report predicting that the Solana price could swell to as much as $520 by the end of the year, owing to rapid continued adoption.
Can SOL Overtake Bitcoin?
Solana’s impressive momentum means it is undoubtedly going to retain its spot as one of the dominant crypto ecosystems in the coming years.
It could even go as far as to challenge the hegemony of Bitcoin (BTC), the world’s largest crypto by market cap.
Solana’s high transaction throughput and low fees, enabled by its proof-of-history consensus mechanism, make it a more scalable and efficient blockchain compared to Bitcoin, potentially attracting more developers and users.
Additionally, Solana’s growing ecosystem of decentralized applications and its ability to handle complex smart contracts could position it as a more versatile platform than Bitcoin.
However, Bitcoin’s entrenched first-mover advantage and its established role as a digital store of value suggest that it’s probably not feasible for Solana to ever overtake its market capitalization.
Additionally, Solana’s history of network outages and centralization concerns undermine its reliability compared to Bitcoin’s proven security and decentralization, which are critical for maintaining user trust in a leading cryptocurrency.
That said, both are likely to be massive winners in the years ahead as institutional interest and policy developments continue shaping cryptocurrency markets.
Solana could still have gains of as much as 5x in the bag from current levels this cycle.
Solaxy (SOLX) – Higher Beta Play on the Solana Ecosystem
For those bullish on the Solana ecosystem for the coming years, one way to generate outsized returns could be to bet on smaller market cap projects operating within the Solana ecosystem with a leadership position.
Projects like this will sell off faster during the bad times, but will pump harder during the good times.
One project that has sparked the interest of the team at cryptonews.com is Solaxy (SOLX).
Solaxy is a new layer-2 scaling solution for Solana, designed to address network congestion and high transaction failure rates by processing transactions off-chain and batching them for settlement on Solana’s mainnet.
It also bridges Solana and Ethereum, combining Solana’s speed with Ethereum’s liquidity.
Launched in December 2024, its presale has already raised nearly $20 million. Tokens are currently priced at around $0.001632, offering staking rewards with high APY (currently 207%).
Analysts predict SOLX could see massive gains, potentially of as much as 20x, driven by Solana’s growing ecosystem, meme coin trading volume, and Solaxy’s ability to enhance scalability.
Visit Solaxy’s website or follow their social channels on X and Telegram for updates.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
