Solana's SOL Token Rallies 156% as Stablecoin Supply Surges

Solana’s native token, SOL, has shown signs of a potential price rally, despite failing to maintain its bullish momentum after reaching $156 on April 25. The altcoin’s upside potential is supported by several key data points, including a significant increase in stablecoin supply and total value locked (TVL) on the Solana network.

Solana’s stablecoin supply has surged by 156% in 2025, reaching a new all-time high of $13 billion. This increase is driven by the growing demand for stablecoins within the Solana ecosystem, which are integral to its decentralized finance (DeFi) operations. Stablecoins drive liquidity and increase demand for SOL, as it is used for transaction fees and staking, potentially pushing its price upward. Historically, increased stablecoin inflows have correlated with price rallies, as seen between December 2023 and August 2024, when a 230% rally in SOL price was accompanied by a 160% increase in stablecoin inflows.

Solana’s TVL has also seen a significant increase, rising from $6.1 billion on April 9 to $7.65 billion on May 6, an increase of over 25% in almost 30 days. This growth is accompanied by a 25% increase in daily transaction count to 57.77 million transactions. Positive signs include a 44% increase in deposits on Sanctum, a liquid staking application, and 25% growth on Jito and Kamino. Solana remains the second-largest blockchain in terms of TVL and ranks first in decentralized exchange (DEX) volumes, with daily DEX volumes standing at $2.61 billion and a 27.7% DEX volume market share, ahead of BNB Chain and Ethereum.

Technical analysis also supports the bullish outlook for SOL. The SOL price has formed a bull flag chart pattern in the daily timeframe, which is a bullish setup that forms after the price consolidates inside a down-sloping range following a sharp price rise. Bull flags typically resolve after the price breaks above the upper trendline and rises by as much as the previous uptrend’s height. This puts the upper target for SOL price at $220, up 53% from the current price. Crypto analyst RisHad noted that SOL price needs to hold the $120 - $130 support to increase the chances of moving toward $178 and beyond.