Staking and Supply Squeeze Propel Solana to $137B Market Cap ATH

Solana’s market capitalization reached an all-time high of $137 billion in late 2025, driven by structural on-chain dynamics despite the token’s price remaining 15% below its peak. The surge in market cap reflects a combination of supply-side mechanics, including recent token unlocks, high staking activity, and a tapering inflation rate. These factors have created a bid-heavy orderbook profile, supporting price resilience and positioning the network for potential long-term upside .

The market cap expansion was fueled by a significant increase in circulating supply. Approximately 89% of Solana’s total supply—around 543 million SOL—is now liquid, with the remaining 11% locked or reserved. A major unlock of 11.16 million tokens in 2025, linked to the FTX-driven distribution, cleared a critical overhang, reducing supply-side risks. Monthly unlocks have since averaged just 12.7k, minimizing future downward pressure on price . This absorption of supply has enabled the market cap to surpass previous peaks, even as the token price stabilized near $250, below its January 2025 ATH of $294.

On-chain adoption metrics further reinforce Solana’s structural strength. Staking activity has locked nearly 67% of the total supply, with 410 million SOL staked as of late 2025. This supply-side squeeze has reduced circulating liquidity, creating upward pressure on price action. Meanwhile, the network’s annual inflation rate of 4.279% is designed to taper over time, aligning with long-term value accrual for token holders . The combination of high staking participation and declining inflation has created a favorable environment for sustained price momentum, even in the absence of immediate bullish price movements.

The market’s response to these dynamics is evident in Solana’s performance. The network achieved a 55% return on investment in Q3 2025, breaking key resistance levels and demonstrating strong buyer demand. This growth was supported by a surge in decentralized application (dApp) activity, with 407 dApps now operating on the network—ranking Solana 10th globally . Additionally, total value locked (TVL) in Solana-based DeFi protocols reached $11.17 billion, accounting for 9.1% of all DeFi TVL . These metrics highlight the network’s growing utility and its ability to attract both retail and institutional capital.

Analysts argue that Solana’s valuation is not simply a function of price but a reflection of its underlying economic fundamentals. The bid-heavy orderbook, driven by absorbed supply-side risks and robust staking activity, suggests a structurally sound foundation for future growth. While the token’s price has lagged its market cap, this divergence may signal a maturation of the network’s adoption curve. The remaining supply of 11% is expected to be released gradually, further reducing the risk of price volatility from large unlocks .

The current market dynamics also position Solana for continued institutional interest. The network’s high throughput—processing over 700,000 transactions per second—and low fees have attracted partnerships with major players in DeFi and NFTs. These developments, coupled with a growing developer community of 3,201 active participants , reinforce Solana’s role as a scalable infrastructure for Web3. As the ecosystem expands, the interplay between utility-driven demand and supply-side constraints could drive further appreciation in both price and market cap.

[1] Solana market cap hits $137B ATH despite price lag - Is SOL overvalued? (https://ambcrypto.com/solana-market-cap-hits-137b-ath-despite-price-lag-is-sol-overvalued/)

[2] Solana (SOL) Price Prediction 2025 2026 2027 – 2030 (https://investinghaven.com/solana-sol-price-predictions/)

[3] Solana (SOL) Price Prediction 2025, 2026 - 2030 - Crypto News (https://cryptonews.com/price-predictions/solana-price-prediction/)