Institutional Eyes Turn to Solana as On-Chain Signals Echo 2020 Bull Run

The Solana (SOL) blockchain has recently generated a bullish technical signal that historically preceded a substantial surge in the price of the native token. According to on-chain analysts, the current market behavior mirrors a key pattern observed in late 2020, which ultimately led to a more than 1,300% increase in the price of SOL within a 12-month period. The signal is tied to a sharp increase in on-chain activity, including a notable rise in the number of addresses holding significant balances of SOL, as well as a surge in the value locked within decentralized finance (DeFi) protocols built on the Solana network .

This development has drawn attention from both retail and institutional investors, many of whom are now monitoring Solana’s price action with renewed interest. On-chain data platforms have highlighted a growing trend of accumulation among long-term holders, suggesting that market sentiment is shifting in favor of a bullish outlook. Additionally, the average daily transaction volume on the Solana blockchain has exceeded previous highs from earlier in the year, indicating increased usage and adoption of the network .

Market analysts have pointed to the strength of the broader crypto market as a potential catalyst for further gains in Solana’s native token. With Bitcoin and Ethereum experiencing renewed upward momentum, many observers believe that altcoins with strong fundamentals and growing utility—like Solana—are likely to outperform in the current cycle. Solana’s high throughput and low transaction fees continue to make it an attractive option for developers and users looking for scalable blockchain infrastructure .

The recent price performance of SOL has also been supported by a surge in decentralized application (dApp) activity. Several high-profile projects have announced new integrations with Solana in recent weeks, including decentralized exchanges, lending platforms, and NFT marketplaces. This has led to an increase in demand for SOL, both for transaction fees and as collateral within DeFi protocols. The cumulative effect has been a steady increase in the token’s utility and demand .

While some market watchers remain cautious, citing potential regulatory risks and volatility in the broader crypto market, the majority of technical indicators currently support a continuation of the bullish trend. Analysts at several crypto research firms have adjusted their price targets for SOL higher in light of the recent on-chain developments, with some now projecting a price of $100 or more in the next 12 months under a best-case scenario .