Solana News Today: Institutional Money Could Fuel Solana’s Leap to $335—Here’s Why

An emerging thesis among cryptocurrency analysts suggests that Solana (SOL) could see a dramatic price surge driven by a potential "15x multiplier effect" from institutional capital inflows. This model, drawn from Ethereum’s recent performance, implies that every $1 billion of institutional investment could generate a $15 billion increase in market capitalization. Applying this to Solana’s current $130 billion market cap, the model predicts a price target of $274 with a $2.5 billion inflow and a potential rise to $335 with $5 billion of institutional money entering the market [1].

This thesis is supported by the observation that institutional investors are shifting from the traditional "Bitcoin, then Ethereum, then altcoins" flow, and are now positioning directly into Solana. Recent on-chain data shows increased trading volumes linked to digital asset treasuries, suggesting that Wall Street is beginning to allocate capital into Solana ahead of Bitcoin or Ethereum rallies. Analysts point to two key catalysts: the potential approval of Solana ETFs in mid-October and the initiation of bulk purchases by institutional treasuries, which previously fueled Ethereum’s rally [1].

Further reinforcing this trend is the U.S. government’s recent announcement to distribute GDP data on blockchains, including Solana. This move, endorsed by the Trump administration, has been interpreted as a significant validation of Solana’s infrastructure and scalability. Solana’s official account highlighted the role of Pyth Network in verifying on-chain data, signaling increased institutional confidence in the blockchain’s capabilities [2].

On-chain metrics and whale activity also point to a bullish outlook. Whale inflows in late August totaled $57.7 million, indicating aggressive accumulation. At the same time, Solana’s price is trading near the 61.8% Fibonacci retracement level and showing strong resistance at $220. Technical indicators such as RSI and EMA lines remain in a constructive range, suggesting the potential for further gains if key resistance levels are breached [2].

However, analysts caution that while the institutional flow and technical indicators are positive, Solana’s ability to sustain a rally depends on three factors: strong on-chain activity, increased demand for bullish leverage, and favorable regulatory developments. Currently, on-chain activity has been weak, with a 17% drop in network fees and a 10% decline in transaction volume. Furthermore, the absence of significant leveraged positions on futures markets suggests a cautious approach by traders [3].

The potential approval of a Solana spot ETF remains a critical factor. Analysts estimate a 90% chance of approval by mid-October, which could unlock substantial institutional inflows similar to those seen in Bitcoin and Ethereum ETFs. If approved, such an event could shift Solana from a high-performing altcoin to a core portfolio asset for mainstream investors [3].

In contrast to Bitcoin’s sideways movement between $113,000 and $123,000, Solana has shown resilience and upward momentum, recently trading near $210 after climbing from $190. This divergence has led some to speculate that Solana may be leading the next crypto rally, independent of Bitcoin’s performance [1].

Source:

[1] Solana's "15x Multiplier" Model Predicts a Price Target of $274 (https://coinedition.com/solanas-15x-multiplier-model-predicts-a-price-target-of-274/)

[2] SOL Tests $215 as U.S. Blockchain Push Fuels Momentum (https://coinedition.com/solana-price-prediction-sol-tests-215-as-u-s-blockchain-push-fuels-momentum/)

[3] SOL Rally To $250 May Happen In 2025 (https://cointelegraph.com/news/sol-could-rally-to-250-if-three-key-factors-align)