Solana Price Update: Why SOL Jumped 10% and What It Signals for Utility-Focused Protocols

Solana's price surged 10–13% in 24 hours, climbing from a two-week low of $75 to an intraday high near $89. This move was part of a broader market recovery, with Bitcoin rising more than 5% to trade around $67,000. The altcoin rally lifted major peers, including Ethereum and XRP, as the total crypto market cap climbed above $2.28 trillion.

The immediate catalysts were flow-driven. Spot Solana ETFs pulled in $40 million in net inflows since February 9, adding direct buying pressure. At the same time, futures markets saw a surge in activity, with SOL's open interest rising by more than 5% to $5.27 billion. This spike in leverage coincided with short liquidations totaling $15.4 million, indicating intense demand-side pressure that accelerated the move.

The rally's momentum was amplified by the macro environment. Bitcoin's strong rebound provided the tailwind for altcoins, while US-traded spot Bitcoin ETFs recorded $258 million in net inflows on February 24. This institutional buying flow into the market leader created a favorable backdrop, allowing Solana's specific ETF demand and technical breakout to drive a significant price pop.

Institutional vs. Retail Flow Dynamics

The rally is being powered by a clear split between steady institutional buying and catching-up retail speculation. On the institutional side, demand has been consistent, with US spot SOL ETFs recording $30.86 million of daily net inflow on Wednesday. This marks the 11th consecutive day of inflows, expanding total net assets to $823.72 million. This flow provides a foundational layer of conviction.

Retail activity is now accelerating to match this institutional momentum. The derivatives market shows the shift, with SOL futures Open Interest rising 7% to $5.34 billion in the last 24 hours. More telling is the funding rate, which turned positive to 0.0078% from negative levels. This indicates traders are paying to hold long positions, a classic sign of speculative demand catching up.

The technical setup reflects this dual flow. Price is consolidating within a range from a key support at $77.60 up to resistance at $90, $95, and $100. The recent spike in open interest and positive funding suggests the market is building positions for a decisive move, likely targeting those resistance levels.

Ecosystem Utility vs. Valuation Gap

The price surge is not supported by a proportional increase in network utility. While the ecosystem is showing robust activity, with 148M daily transactions and 5M+ active addresses hitting record highs, the market is pricing in a narrative shift. Solana's market share dropped 12 percentage points in 2025, and it lost its #1 narrative ranking to AI and 'Made in USA' themes. This disconnect suggests the rally is driven by flow and sentiment, not a fundamental re-rating of its underlying usage.

The valuation gap is stark. Despite a 755% year-over-year growth in payment volume, the ecosystem's declining market share indicates that new capital is not flowing into Solana's utility but into competing narratives. The recent institutional inflows into spot ETFs provide a floor, but they are not yet translating into a broader market repositioning around Solana's specific utility metrics.

The path forward faces a major technical hurdle. The next significant resistance sits at $115, where about 22 million SOL were previously acquired. This large supply zone could cap further gains without a new catalyst that re-establishes Solana's dominance in the crypto imagination. The rally may continue to be a story of flow chasing price, not price chasing utility.