SOL’s next stop could be $300: 3 forces shaping Solana’s next major rally

Solana's native token, SOL, rebounded to $229 after briefly dipping to $218, giving hope to traders believing in a potential rally towards $300. This optimism follows a positive response to the US Federal Reserve's hints at interest rate cuts in 2025. SOL has seen significant activity with $706 million in weekly inflows from ETFs, surpassing XRP’s $219 million. Despite this, funding rates for SOL futures remain below the neutral level of 6%, indicating reduced demand for bullish positions. Network fees on Solana rose by 22%, reflecting increased activity on decentralized exchanges, whereas Ethereum experienced a 21% drop in revenue. Solana also outpaced Ethereum in total volume, with $129 billion compared to Ethereum’s $114 billion over the last 30 days. Additionally, its total value locked (TVL) rose by 8%, reinforcing its position as the second-largest network. The funding rates suggest a caution among traders, perhaps due to competition from other blockchains, even as institutional demand for Solana grows, boosting expectations for future price increases.

Source 🔗