Solana Surges 11.185% as Buybacks Quadruple to $46.8 Million

Solana's latest price was $200.40, up 11.185% in the last 24 hours. This surge in price is indicative of the growing interest and confidence in the Solana ecosystem. One of the key drivers behind this trend is the increasing adoption of token buybacks by various protocols within the Solana network. Token buybacks have become a consistent trend, with protocols using them to stabilize prices, reduce circulating supply, and adjust incentives between teams and communities. According to data from Dune Analytics, the weekly buyback volume from protocols surged from approximately $14.5 million in late June to over $37.5 million by mid-July, marking a 158% increase in just two weeks. This growth is primarily driven by protocols based on Solana, which saw increases of 301%. Solana's buyback volume quadrupled in a short period, reaching a new high of $46.8 million in the most recent week, with Solana protocols leading the way.

Over the past three months, the composition of buybacks across different blockchains has undergone significant changes. Solana's share of weekly protocol buybacks rose from 10.8% in mid-June to over 38% in the latest week, largely at the expense of Hyperliquid and Ethereum. Hyperliquid still holds the largest overall share, maintaining over 58%, but Solana's rise indicates increasing diversification. In contrast, Ethereum's share decreased from 5.7% to 2.5%. Within Solana's ecosystem, various protocols are involved in buybacks. Aggregators and DEXs like Jupiter and Raydium maintain steady plans, with Jupiter committing to buy back $1 million to $2.3 million of JUP weekly, and Raydium buying back $500,000 to $1.5 million of RAY weekly. Other protocols, including Metaplex and Step Finance, also allocate resources for token buybacks. For instance, Step Finance uses 100% of its revenue to buy back up to $120,000 of STEP weekly over a longer period. These examples illustrate that different parts of the Solana ecosystem are actively engaged in buybacks. However, new entrants are reshaping this landscape. Memecoin launch platforms Pump.fun and Letsbonk.fun recently initiated buyback programs and have quickly become significant participants. Letsbonk.fun launched its $BONK buyback program in early July, increasing from $2.6 million in the first week to $6.6 million by the end of the month. Shortly after, Pump.fun started its buybacks, rising from $12,500 in mid-July to over $1.3 million in the latest week, accounting for nearly 29% of all protocol buyback transactions during that period.

Beyond signaling confidence, token buybacks can also be analyzed as an investment. If the tokens bought back today were sold, which protocol would see the highest return? Data shows mixed results. Raydium leads with over 19% buyback PnL, followed by Pump.fun with 11.8% and Aave with 6.75%. Hyperliquid, despite its large buyback volume, has a modest 0.65% increase, highlighting that high trading volume does not guarantee profitability. The worst performers include $BONK with a 26.3% decrease, Jupiter with a 5.65% decrease, and Ether.fi with a 5.6% decrease. In the past 90 days, over $340 million has been spent on token buybacks, with Hyperliquid accounting for approximately 68% of the total. Meanwhile, Solana protocols' share of weekly buybacks has neared 40%. These figures indicate that buybacks are no longer experimental but have become a regular feature of protocols' economies across different chains. However, results vary widely. Raydium's buyback yield exceeds 19%, while BONK's decreases by over 26%. This contrast underscores that the impact of buybacks depends on timing, transparency, and market conditions. As major companies and new entrants expand these programs, the true test will be whether buybacks can become a sustainable, regulated tool rather than a short-term signal.

Solana's Total Value Locked (TVL) has surged from $300 million to $12.9 billion, marking a growth of over 4,200% in one year. This significant increase signals a massive revival in the Solana DeFi ecosystem. After a year of relative stagnation, Solana is once again making headlines. The sharp rise in TVL indicates that more users and developers are trusting the Solana ecosystem for decentralized finance (DeFi) applications. TVL measures the total value of assets locked into a blockchain's DeFi protocols, and higher numbers usually mean stronger user activity, liquidity, and overall ecosystem health. Several factors are contributing to this dramatic shift. First, Solana has recovered from the FTX fallout, regaining both investor confidence and developer interest. New and improved DeFi protocols, including lending platforms, DEXs (decentralized exchanges), and liquid staking solutions, have emerged and attracted significant capital. In addition, Solana's fast and low-cost transactions are helping it stand out in a crowded field. As Ethereum gas fees remain relatively high, Solana offers a more user-friendly alternative for both retail and institutional players. The broader crypto market recovery also plays a role. As Bitcoin and Ethereum prices climb, users are looking to layer-1 ecosystems like Solana for new opportunities and yield. If this trend continues, Solana could become a serious contender in the DeFi space once again. With billions of dollars now flowing into its ecosystem, developers are likely to continue building. This could lead to a new wave of innovation and further TVL increases. For now, the numbers speak for themselves: Solana is back on the map, and its DeFi revival looks stronger than ever.

VanEck has resubmitted S-1 filings to the SEC for a spot Solana ETF, including liquid staking tokens like JitoSOL, in collaboration with key stakeholders. This move highlights institutional interest in Solana-based yield strategies, potentially increasing staking participation and on-chain liquidity, pending regulatory approval. VanEck and Bitwise spearhead this initiative, intending to expand Solana-based investment opportunities. The project sees collaboration with Jito Labs and advocacy groups supporting Solana's liquid staking ecosystem. The inclusion of JitoSOL in the ETF could enhance staking participation and bolster on-chain liquidity. The strategy is aimed at preparing for smooth ETF trading after SEC approval. The proposal is expected to stimulate institutional interest in Solana, potentially increasing TVL and staking flows. Historical trends from similar ETF launches indicate possible widespread institutional inflows in anticipation of regulatory decisions. The Solana ETF initiative follows the path of Bitcoin and Ethereum ETFs, which previously saw institutional inflows post-approval. The REX–Osprey Solana + Staking ETF has set a viable precedent for JitoSOL’s inclusion. Insights suggest improved utility of Solana investments based on historical success stories.

A significant Solana transaction valued at over $181 million was recorded on August 20 as 1,000,000 SOL was moved out of Binance. According to Whale Alert data, the funds originated from a Solana cold wallet and were transferred to a newly created destination address, established only 14 days prior on August 7. The transfer took place while the broader cryptocurrency market faced steep declines. Despite widespread sell-offs, this transaction indicated a contrasting sentiment from a large holder, suggesting possible strategic accumulation at a lower price point. Notably, large withdrawals from centralized exchanges like Binance are often interpreted as signals of long-term holding or private custody. Although the source wallet stored in the cold storage was on Solana, linked to Binance, the recipient address remained anonymous. Analysts have pointed out that it was early in existence and a track record of prior transactions would indicate that it is a new high-net-worth investor or institution. This has raised the speculation on the motive behind the kind of huge acquisition in the tumultuous conditions in the markets. The movement was soon after the whale transaction leading to the assumptions that strategic buys might have contributed to stabilization or propulsion of the price. Although it is impossible to identify the identity of the investor, the magnitude and time frame of the deal indicate a growing institutional trust in the long-term Solana value. As the market offers reduced liquidity and elevated volatility, this intense activity can usually and indeed frequently herald a bigger financial transaction. The conflagration has brought a new wave of speculations around Solana among retail and institutional investors. Market monitoring suggests that in the short term, there is more to expect in terms of whale activity, particularly should prices remain sweet. As the speculative mood rages on, the community watches to see other big transactions that can cause a surge.

VanEck has submitted a filing with the Securities and Exchange Commission seeking approval for a groundbreaking staked Solana exchange-traded fund (ETF). This proposed product aims to provide traditional market investors with exposure to Solana's native token and includes a mechanism allowing holders to earn staking rewards directly within the fund structure, representing a significant step towards bridging traditional finance with specific functionalities of the Solana blockchain. Regulatory authorities will now need to evaluate this novel approach involving staked digital assets. Reflecting Solana's increasing prominence within the institutional investment landscape, CME Group has launched new futures contracts for Solana, offering market participants expanded tools for hedging and managing risk associated with the asset. This development coincides with reports highlighting continued institutional inflows into existing Solana-linked financial products, specifically noting substantial weekly capital additions enhancing the assets under management of the REX-Osprey SOL + Staking ETF. Demonstrating ongoing technical progress, the Solana network recently achieved a new peak in transactions processed per second (TPS), underscoring its reputation for high throughput and scalability. Despite this technical milestone representing a core strength of the network, some market discussions suggest attention is concurrently shifting towards evaluating other blockchain platforms and layers active this month.