Solana (SOL) is making headlines once again. After a sharp 15% dip last week, the cryptocurrency has bounced back with a 2.34% gain in the past 24 hours, currently trading around $126.90. With a market cap of $64.64 billion and 24-hour volume of $3.62 billion, many are now asking the same question: why is Solana rising today, and can it really reach $500 — or is another crash on the horizon?
Let’s dive into what’s fueling this upward momentum and what the future might hold for SOL.
Why Is Solana Price Rising Today?
📈 1. Franklin Templeton Files for a Solana ETF
A major catalyst behind the recent SOL price recovery is Franklin Templeton’s ETF filing. The $1.53 trillion asset manager has submitted an application for a Solana ETF via the Cboe BZX Exchange. This follows its earlier XRP ETF move, making Franklin Templeton the largest player actively pursuing both markets.
The Solana ETF race kicked off on June 27, when VanEck made the first filing. Since then, excitement has grown across the crypto space. Even though the SEC hasn’t approved any of the pending ETFs yet, investor sentiment is clearly bullish — with Polymarket showing a 90% chance of approval.
This institutionalJ backing has significantly boosted market confidence and helped push SOL higher.
🧠 2. Proposal to Slash SOL Inflation Gains Support
Another factor supporting Solana’s rise is the SIMD-228 proposal, which suggests cutting SOL’s inflation rate by 80%. So far, about 37.5% of validators support the idea, while only 17.2% are against it.
If approved, this change could reduce the amount of new SOL entering circulation — a potential bullish signal that could ease sell pressure. However, some critics worry it may affect network decentralization and staking rewards.
💼 3. Galaxy Digital Stakes $39M in Solana
Institutional interest continues to grow. Galaxy Digital, led by billionaire Mike Novogratz, has recently staked over 274,000 SOL (~$39.15 million) after withdrawing tokens from Binance and Coinbase. This follows Galaxy’s earlier Solana acquisition in FTX’s bankruptcy auction on March 1, 2025.
This major move signals long-term faith in Solana’s ecosystem and strengthens its recovery narrative.
Will Solana Crash Again or Gain More Momentum?
While the current rally is promising, some warning signs are emerging that could trigger another price dip.
🚨 Massive SOL Transfer from Binance Raises Eyebrows
According to Lookonchain, a large amount of SOL — roughly 201,755 tokens worth $25 million — was recently moved from Binance to an unknown wallet. These large-scale transfers often point to whale activity, which can influence short-term price movement, either positively or negatively.
📉 Declining On-Chain Activity Raises Concerns
Analyst Ali Martinez recently highlightedJ a steep drop in Solana’s transfer volume, falling from 4,500 million in Nov 2024 to under 500 million in March 2025. Alongside this, DeFi activity has dipped from $12 billion to $7 billion, and monthly fees have shrunk from $250 million to just $89 million.
If network activity continues to decline, it could undermine Solana’s bullish momentum and impact long-term investor confidence.
Solana Price Prediction: Can SOL Reach $500 in 2025?
Solana is currently battling resistance near the $130 mark. If it breaks through, the next target could be $150 in the short term. However, failure to hold above $130 might push SOL back down toward $124 support, and potentially $110–$100if sentiment weakens.
Looking further ahead, hitting $500 in 2025 will depend on:
- Sustained institutional interest
- ETF approvals
- Network growth
- Overall crypto market trends
Without these tailwinds, such a target could remain out of reach.
Final Thoughts: Will SOL Keep Rising or Pull Back?
Solana’s recent price surge is backed by strong catalysts — from ETF momentum and inflation control proposals to big-name investments. However, challenges like declining network activity and whale movements still raise concerns.
In the short term, breaking key resistance zones could pave the way for more gains. But for SOL to sustain long-term growth or hit $500, fundamentals and broader market conditions will need to stay in its favor.
Stay tuned — Solana’s next move could set the tone for the rest of 2025.
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