SOL price recovers, but new highs depend on multiple factors

Solana’s native token, SOL, rose by 10.5% after hitting the $191 level but remains 10% lower over the past two weeks, lagging behind Ethereum and BNB. Investor sentiment improved following US President Donald Trump's stance on avoiding a government shutdown, yet the lack of Congressional agreement poses risks. Meanwhile, gold's price reached an all-time high amid concerns over US fiscal debt. The Solana network has experienced a drop in activity, with transaction numbers down by 10% and fees halved in the past week, compared to competitors like BNB which have seen fee increases. The emergence of synthetic perpetual futures on platforms like Hyperliquid has dampened sentiment for SOL, which was once a leader in decentralized exchange activities. Analysts speculate that the potential approval of spot ETFs by the SEC could be a catalyst for SOL, but concerns regarding validator income sustainability and staking inflation loom large. The dynamics are shifting, and while SOL has the potential for a rebound, its future performance will depend on several critical factors including institutional inflows and network health.

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