Solana’s price has increased by 2.85% amid strong institutional support from Galaxy Digital’s shift from Ethereum to Solana, as well as significant growth in network activity. Solana has excelled in key metrics, surpassing Ethereum in DEX volume and active addresses. The rise of memecoins adds to the ecosystem’s momentum, with technical indicators suggesting further potential price increases.
Solana (SOL/USD) has increased by 2.85% to $142.17 on Tuesday, marking a continued period of gains that surpasses the broader cryptocurrency market. Over the past week, Solana has seen a rise of 7.15% and 6.5% over the month, driven by a combination of institutional investment and retail speculation.
A significant factor influencing this rise is Galaxy Digital’s decision to shift its investments from Ethereum (ETH/USD) to Solana. Recent blockchain data indicates that Galaxy Digital transferred 65,600 ETH, valued at about $105 million, to an exchange and withdrew 752,240 SOL, worth roughly $98.4 million, in the last two weeks. This shift follows Standard Chartered’s warning of a “structural decline” for Ethereum and a revised year-end target for the asset, while Solana’s network activity continues to gain momentum.
In terms of usage metrics, Solana has outperformed Ethereum, as reported by Dune Analytics. The volume of decentralized exchange (DEX) activity on Solana surpassed $500 billion over the last three months, compared to Ethereum’s under $400 billion. Additionally, Solana has more than 220 million active addresses, significantly more than Ethereum’s 80 million.
Moreover, the recent surge in memecoins, particularly with Fartcoin trading above $1 and boasting a market cap exceeding $1 billion, has generated excitement within Solana’s ecosystem. This has led to an increase in trading volume and leveraged bets on Solana-based platforms. Despite memecoins often being volatile, this activity has attracted attention to Solana and increased transaction volumes.
From a technical viewpoint, Solana’s recent breakout above $140 suggests a potential test of previous highs in the range of $145–$148. Current momentum indicators are strong, and positive on-chain flows suggest a robust market position. As concerns regarding Ethereum’s scalability persist, Solana is well-positioned for sustained growth if overall market conditions remain favourable.
