Solana Gains Momentum in Tokenized Assets and Institutional Adoption Amid Legal Risks

• Solana has become a leading blockchain for tokenized assets, including equities and real-world assets, with $872 million in tokenized assets traded on the chain in 2025.
• Institutional interest in Solana is growing, as evidenced by the approval of Solana spot ETFs and the filing for a Solana ETF by Morgan Stanley.
• A major lawsuit involving key Solana executives and partners has introduced a significant risk to the ecosystem, potentially causing short-term volatility.

Solana has emerged as a critical infrastructure for tokenized assets and SocialFi applications. The blockchain's capacity to handle thousands of transactions per second with minimal fees makes it well-suited for high-frequency trading and microtransactions according to analysis. Tokenized assets, particularly in the equity market, are expanding rapidly on the network, with platforms like Pump.fun reporting $6 billion in weekly trading volume.

Institutional adoption is also accelerating. The launch of U.S.-listed Solana ETFs has provided traditional investors with a familiar vehicle to access the network, while partnerships with firms like PayPal, Stripe, and Visa indicate broader acceptance as noted in reports. This trend is supported by on-chain metrics such as 33 billion transactions and $1.5 trillion in DEX volume in 2025.

Despite these positives, the network faces a significant legal risk. A lawsuit involving key executives and partners, including Pump.fun's alleged exploitation of retail investors, could disrupt major projects and investor confidence. While the long-term potential for Solana remains strong due to its ecosystem growth and infrastructure, this legal exposure introduces uncertainty.

What is driving Solana's institutional adoption in 2026?

Institutional adoption is being driven by the approval of Solana spot ETFs, which have made it easier for traditional investors to access the network without crypto wallets. These ETFs have already attracted $1.02 billion in net inflows, reflecting growing confidence in Solana as an investable asset. Additionally, partnerships with major financial institutions like Western Union and the filing for a Solana ETF by Morgan Stanley indicate further institutional interest.

Solana's technical capabilities also contribute to its appeal. The blockchain's speed, low fees, and scalability make it suitable for applications in finance, gaming, and IoT according to industry analysis. Developers are leveraging Solana's infrastructure to build applications that support real-time data, tokenized economies, and microtransactions as demonstrated.

What are the key risks to Solana's growth in 2026?

The lawsuit involving key Solana entities is the most significant risk to its growth in 2026. This legal issue has the potential to disrupt major projects and deter institutional investment. The lawsuit, which includes allegations related to Pump.fun's operations, highlights the exposure of Solana to regulatory and legal challenges.

While the long-term fundamentals remain positive, the uncertainty from this lawsuit could lead to short-term volatility. Investors are advised to maintain small positions and closely monitor developments. Additionally, the market will be watching how Solana's ecosystem responds to this legal pressure and whether it can continue to innovate and attract new users despite the risks.

What are the technical indicators suggesting for Solana's price movement in 2026?

Solana's price has been trading below its 30-day SMA of $134.95 but remains above a critical support level of $123.11 according to technical analysis. Technical indicators, including a bullish MACD divergence and a position in the lower half of its Bollinger Bands, suggest oversold conditions and potential upward momentum. A breakout above $146.91 could lead to a move toward $150–$160 as forecasted.

On-chain activity also supports a positive outlook. Solana's network processed 33 billion transactions and $1.5 trillion in DEX volume in 2025 as reported. The blockchain's TVL of $10.2 billion and $2.39 billion in revenue from applications further indicate robust network activity according to data. These metrics, combined with growing institutional adoption, suggest that Solana is well-positioned for potential price appreciation in 2026.