Solana (SOL) has been making headlines recently after a 35% rise since May. The broader crypto market rally, which began in July following the passage of the Genius Act, has supported this move. The legislation was seen as a positive shift for stablecoin-focused blockchains, with Solana among the main beneficiaries.
Price Action and Resistance
SOL is now approaching important resistance levels against both Bitcoin and Ethereum. This suggests its recent strength could ease in the short term. On-chain data also shows a steady decline in active wallets since early 2025, a trend that often signals caution for traders. Still, if the overall market continues higher, SOL is expected to follow.
DeFi Growth and Capital Flows
Despite weaker wallet activity, Solana’s total value locked (TVL) in DeFi has reached record highs. Most of this growth appears to come from new capital moving in, including from real-world assets (RWAs). This inflow shows that liquidity on Solana is expanding and that the ecosystem is continuing to attract investment.
Price Outlook
Analysts see a short-term target for SOL between $350 and $375 if it breaks above $250 resistance. Failure to hold could mean a move back to $125. Longer term, the coin could climb toward $500, supported by technical patterns and increasing adoption.
At the time of writing, SOL is trading at $196 and is down by more than 3% in the last 24 hours.
Can Solana Flip XRP?
XRP is projected to reach $4.5–$5 in this cycle, which would give it a $300 billion market cap. For Solana to move ahead, it would need to surpass this figure. That would place SOL closer to $600–$700. Whether this happens depends on Solana’s roadmap milestones, capital inflows, and continued ecosystem growth.