Why is Solana going up: key drivers behind today’s price momentum
Solana hits $211 with a 4% gain, standing out among top cryptocurrencies today.
Solana (SOL) has been one of the day’s top performers among large-cap cryptocurrencies. Over the past 24 hours, SOL is up 4%, trading around $211, while Bitcoin has risen 1.7% and Ether has dropped 0.3%. Over the last 7 days, SOL has gained 12.4%. So, why is Solana going up today?
Considering these factors, one of the main questions on investors’ minds is why did Solana go up, and the combination of strong technical signals and ETF-related optimism provides a clear answer.
Key Points
- Institutional interest in Solana continues to grow
- Growing ecosystem and anticipated network updates drive demand
- Technical analysis reveals strong bullish momentum for SOL
Solana (SOL) 24-hour market performance. Source: TradingView
Solana treasuries are gaining popularity
The number of publicly traded companies holding Solana on their balance sheets continues to grow. According to data from CoinGecko, Solana treasury companies hold 3,715,814 SOL, valued at over $787 million at current market rates. The largest Solana treasury is Upexi with 2,000,518 coins, followed by DeFi Development Corp. and Sol Strategies, holding 1,270,259 and 370,420 coins, respectively. At the same time, Pantera Capital announced plans to raise $1.25 billion to create its own Solana treasury firm. These developments help explain why Solana is going up, as growing corporate adoption increases confidence and demand for the coin.
Solana treasury companies hold over $787M in SOL. Source: CoinGecko
Ecosystem expands as developer activity increases
Solana is the second-largest blockchain after Ethereum in terms of total value locked (TVL) across its projects. Based on DefiLlama, the network currently maintains a TVL of around $11.5 billion, with leading projects including Jito, Jupiter, and Kamino. Consistent developer engagement and the launch of new projects indicate strong demand and utility, another factor to consider when asking, “why is Solana going up.”SOL broke a key resistance level Solana's price has pushed above a key resistance level of $200, which it had been struggling to break for months. This successful breakout is seen as a major bullish signal for traders and analysts, suggesting a potential new upward trajectory. Following the SEC's approval of the first U.S.-listed Solana staking ETF in July, optimism around upcoming spot Solana ETFs has also added to investor confidence. The next resistance levels to watch are around $220 and $230. If SOL can overcome these, it may continue its rally.
Considering these factors, one of the main questions on investors’ minds is why did Solana go up, and the combination of strong technical signals and ETF-related optimism provides a clear answer.
Author
Web3 writer and crypto HODLer with a keen interest in market trends and recent technologies.
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