Solana's Market Cap Surges 126% to $126 Billion, Driven by Institutional Investment and Regulatory Shifts

Galaxy Digital's CEO recently declared that the cryptocurrency market is entering a new phase, dubbed the "Solana season." This shift is driven by a surge in institutional investment and a significant change in regulatory policies, both of which are propelling the alternative cryptocurrency Solana into the spotlight.

On September 12, the CEO highlighted that the market momentum and regulatory signals are both favoring Solana. The market capitalization of SOL has surpassed 126 billion, setting a new historical high and surpassing BNB to become the fifth-largest cryptocurrency by market capitalization.

During an interview with CNBC on September 11, the CEO emphasized that asset management firms focusing on alternative cryptocurrencies are injecting new vitality and capital into the sector. A notable example is Forward Industries' recent 1.65 billion funding round, led by Galaxy Digital, Jump Crypto, and Multicoin Capital. This funding aims to establish the largest global Solana asset reserve strategy.

Simultaneously, the regulatory landscape is undergoing a major transformation. The chairman of the U.S. Securities and Exchange Commission recently stated that the agency is committed to modernizing securities rules and regulations to enable market operations on the blockchain. This stance represents a fundamental shift from previous policies and is seen as a signal for accelerated institutional adoption.

These developments indicate that Solana is gaining support from both regulatory bodies and capital markets, positioning it favorably in the competitive blockchain landscape. The 1.65 billion funding for Forward Industries is a significant indicator of institutional confidence in the Solana ecosystem. This capital will be used to build the largest Solana reserve strategy globally, demonstrating professional investment firms' recognition of the platform's long-term value.

The CEO noted that asset management companies focused on alternative cryptocurrencies are becoming new drivers in the market. These firms bring not only financial resources but also new energy and professional operational models to the entire cryptocurrency ecosystem. Another industry expert also predicted the onset of the "Solana season," anticipating that the approval of ETFs, subsequent capital inflows, and corporate treasury purchases will drive similar upward trends for cryptocurrencies like Bitcoin and Ethereum.

Recent statements from the chairman of the U.S. Securities and Exchange Commission have been supportive of cryptocurrencies, including the idea that entrepreneurs and investors should be able to raise funds on the blockchain without facing endless legal uncertainties. The chairman also reiterated that most cryptocurrencies are not securities and thus fall outside the SEC's regulatory purview. These comments are seen as pushing the industry in the right direction.

Additionally, the Nasdaq has submitted a rule change request to the SEC, seeking approval to allow tokenized versions of listed stocks and ETFs to trade on the same order books as traditional securities. If approved, this change could activate a blockchain-based settlement system as early as the third quarter of 2026. The CEO believes that blockchain technology is now fast, secure, reliable, and trustworthy, and with the appropriate regulatory framework in place, it is ready for adoption by Wall Street.