Solana Surges 2.05% as DeFi TVL and Institutional Interest Grow

Solana's latest price was $189.29, up 2.054% in the last 24 hours. The cryptocurrency has been a focal point in the crypto market, with discussions around its future growth and institutional adoption. The project's growth roadmap, which includes scalability and technical progress, has positioned it as a strong contender among rising stars in the crypto space.

Solana's ecosystem continues to expand, with significant developments in decentralized finance (DeFi) and real-world asset (RWA) adoption. In Q2 2025, Solana's DeFi Total Value Locked (TVL) surged, positioning it as the second-largest DeFi network. Kamino led the way with a substantial TVL, while other notable DeFi platforms on Solana include Raydium, Jupiter, Drift, and Meteora, which secured significant positions with substantial TVL.

The increase in DeFi TVL was driven by low transaction fees and high speeds, which continued to attract liquidity providers and traders. The tokenization of real-world assets (RWAs) continued to expand on Solana in Q2. Messari recorded a significant increase in tokenized assets on the blockchain, representing a substantial year-to-date increase. Ondo Finance led with its USDY token, which reached a notable market cap and attracted nearly 7,000 holders. Ondo’s OUSG token followed with a significant market cap, while BlackRock’s BUIDL money market fund grew to a notable amount. Alongside these growth metrics, Solana began governance discussions on the SIMD 326 “Alpenglow” proposal, which aims to reduce block finality to 150 milliseconds and replace the TowerBFT protocol, lowering barriers for smaller validators and improving ledger efficiency.

The Securities and Exchange Commission has postponed decisions on several Solana spot ETF applications, extending the deadline to October 16, 2025. This delay impacts Solana's financial markets with significant price volatility, reflecting critical regulatory influence and revealing strong institutional interest in digital asset investment vehicles. Analysts expect approvals by the deadline, stating they are "expecting standard spot Solana ETFs to be approved by mid-October at the latest." The delay caused a decrease in Solana prices, but analysts predict potential market recovery if approval occurs, referencing historical precedents with SEC delays. The postponement affects market sentiment, but institutional interest remains high. Investor confidence hinges on final approval, as noted by various market commentators.

Jupiter, a Solana-based decentralized exchange, announced its plan to stake $580 million worth of SOL from its JLP fund pool, enhancing rewards distribution among liquidity providers. This move signifies a strategic shift to improve yield for Jupiter's liquidity providers, potentially impacting Solana's staking ratios and overall market dynamics positively. The primary effect of this move targets SOL, increasing its demand and staking ratios. Liquidity providers will benefit from dual reward streams—trading fees and staking rewards. The change aims to raise Solana's perceived value and decentralization. Financially, staking $580 million SOL introduces new revenue paths for Jupiter, enhancing JLP yields with native staking rewards. The action may influence competitors, urging similar strategies, impacting market yields and liquidity flows. Experts suggest this strategic step may amplify Jupiter's market position and SOL's price stability. With enhanced decentralization and validator participation, the outcome could reshape investment strategies on DeFi platforms, affecting yield expectations and blockchain innovation.