Solana's Active Wallets Triple, Institutional Interest Surges

Solana (SOL) has recently experienced a significant surge in network activity, with the number of active wallets tripling from 1 million to 3 million between March 20 and March 23. This increase in activity indicates a growing interest in the Solana ecosystem, which has been further bolstered by recent institutional developments.

One of the key developments is the launch of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) on the Solana platform. This fund, with assets exceeding $1.7 billion, marks a major milestone in institutional adoption for Solana. Securitize, a blockchain-based tokenization company, highlighted Solana’s advantages, noting its high throughput, low costs, and scalability, which make it an ideal blockchain to support institutional-grade real-world assets (RWAs).

In addition to BlackRock’s involvement, Fidelity Investments has filed for a Solana spot ETF with the Securities and Exchange Commission. This filing, submitted through Cboe Global Markets, represents another significant step towards mainstream acceptance of Solana. Fidelity’s move comes shortly after it registered a Delaware Trust entity for its Solana fund, although it has yet to submit an S-1 filing, which is necessary for companies seeking to issue new securities and be listed on a public stock exchange.

The surge in network activity and institutional interest has also been reflected in Solana’s total value locked (TVL), which stood at $6.85 billion. This figure indicates renewed user interest and confidence in the Solana ecosystem. The integration of Polymarket, a decentralized prediction market, has further enhanced Solana’s functionality. Polymarket’s announcement that users can now deposit funds using SOL has attracted new users to its platform and increased activity within the Solana ecosystem.

Technical analysis suggests that Solana has formed an upward reversal pattern by breaking the downward trend line. Crypto analyst Crypto Rand noted that similar buying pressure exists at lower levels due to a sharp rebound from the $120-$130 support zone. If the breakout is sustained, there’s a possibility of testing the next important resistance level of $160. However, failure to maintain a level above $137 could pull the price back toward support levels.

Another analyst, WizCat, pointed out that SOL had been trading in a tight range, indicating smart money entering the market during price stagnation. The increased network activity and the recent price movements suggest a bullish outlook for Solana. For Solana to reach higher price targets like $170, it must first break through the $150 resistance level. Technical analysis shows strong bullish momentum but with clear resistance at key levels.

The Relative Strength Index (RSI) has fallen below 50 recently, indicating weakening momentum. Meanwhile, the MACD indicates bearish divergence, suggesting the potential for short-term consolidation before any possible price rally. If Solana manages to break above $150, it could potentially reach higher levels such as $162 and eventually $170. This would likely be driven by continued network adoption, favorable market sentiment, and increasing institutional demand.

However, if Solana fails to break the $150 resistance, the price may return to support levels of $135 or below. Broader market corrections, macroeconomic trends, or changes in investor sentiment could also affect Solana’s price action in the short term. Despite these potential challenges, the recent developments and increased network activity suggest a positive outlook for Solana’s future trajectory.