Solana ends 10-month slump as institutions buy SOL

Solana reversed a roughly 10-month price decline after institutional investors increased purchases of SOL, pushing prices higher and interrupting a prolonged downtrend.

Over the past several weeks, asset managers, hedge funds and crypto-focused investment vehicles stepped up buying on over-the-counter desks and exchanges, traders and market data showed. The inflows coincided with rising trading volumes and a pickup in on-chain activity.

Trading desks reported larger block trades and improved liquidity in key pairs as institutions executed bigger orders. On-chain metrics registered increases in active addresses and transaction counts, and the total value locked in Solana-based decentralized finance protocols rose modestly.

Investors pointed to Solana’s low transaction fees and high throughput when allocating to the network. Several funds that trimmed positions during the earlier downturn began re-establishing allocations to SOL, with some using staged purchases to add exposure over time.

The ten-month slide followed broader weakness in risk assets, episodes of network instability on Solana and competitive pressure from other smart-contract platforms, which contributed to prior outflows.

The recovery has not erased all earlier losses and price volatility remains elevated. Market participants are monitoring whether institutional demand continues, how macroeconomic conditions evolve and whether on-chain activity sustains the recent gains.

Solana launched in 2020 using a proof-of-history mechanism designed to speed transaction processing and lower fees. SOL is used for transaction fees and staking, and the network hosts decentralized finance applications, non-fungible tokens and other fast-processing use cases.