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Solana (SOL) price is up this week: here's why

27 Jun, 2024

Solana's (SOL) price saw significant gains this week as the overall cryptocurrency market recovers from concerns about potential $9.40 billion Bitcoin (BTC) repayments related to Mt. Gox. On 25 June, Solana's price surged to $140, marking a notable 14% increase from its recent low of $122. At the time of writing on 26 June, Solana is holding up at around $137 per token as traders anticipate its next move. Let's take a look at why Solana is up today and what could happen next.

Altcoin gains driven by Bitcoin's declining dominance

Solana's rally coincides with a decrease in Bitcoin's market dominance, indicating that traders are reallocating their capital from Bitcoin to leading altcoins. The Bitcoin Dominance Index (BTC.D) dropped by 1.82% on 25 June, marking its worst daily performance since January. This decline came after the Mt. Gox trustee announced the repayment of 850,000 BTC to users affected by the exchange's 2014 hack.

The price of Bitcoin has been negatively impacted by market sentiment that views the Mt. Gox update as a signal of potential sell-pressure from the 850,000 BTC. This has prompted traders to focus on altcoins, including the SOL/BTC pair, which has risen 14.70% since the announcement.

While Solana may be riding the wave of interest in altcoins, the Mt. Gox effect does not tell the whole story. For one, the sell pressure from the Mt. Gox repayments appears to have been overestimated, with BTX showing resilience and bouncing back above the $61,000 mark after the initial panic. And, while Bitcoin retains its outsized influence over the wider cryptocurrency market, the SOL token's recent price increases are also down to improvements to and interest in the Solana network.

Increasing institutional interest in Solana

Even before the Mt. Gox news, institutional interest in Solana was rising, with Solana-based investment funds seeing a net inflow of $2.7 million last week. In contrast, Bitcoin-based funds experienced $630 million in outflows, while Ethereum funds saw $58.3 million in outflows.

Why are investors backing Solana?

The SOL token differs from purely speculative or meme-based altcoins as it has utility in the Solana network, built as a rival to the Ethereum network. Like Ethereum (ETH), Solana is a blockchain platform designed to facilitate the development of decentralised applications (dApps), smart contracts, NFTs, and new cryptocurrencies. It aims to deliver fast, secure, and scalable blockchain solutions by utilising a unique combination of architectural innovations.

Key features of the Solana network include:

  • Proof of History (PoH): Solana's core innovation, PoH, is a cryptographic clock that enables greater efficiency and throughput by allowing nodes to agree on the order of transactions without having to communicate in real time.
  • Proof of Stake (PoS): Complementing PoH, Solana uses a PoS consensus mechanism, where validators (nodes) are chosen to confirm transactions and add new blocks based on the number of SOL tokens they hold and are willing to "stake" as collateral.
  • High throughput: Solana boasts impressive transaction speeds, capable of processing up to 65,000 transactions per second (tps), far surpassing many other blockchain platforms.
  • Low fees: The network offers minimal transaction costs, making it attractive for both developers and users.
  • Scalability: Solana is designed to maintain high performance and low costs as the network grows, addressing one of the major challenges faced by other blockchains.

Solana's unique combination of PoH and PoS provides unparalleled speed and scalability, making it a strong contender against other major blockchain platforms like Ethereum.

The SOL token is used on the Solana network for:

  • Transaction fees: SOL is used to pay for transaction fees and computational costs on the Solana network.
  • Staking: Users can stake SOL to become validators and earn rewards. This incentivises network security and stability.
  • Governance: SOL holders can participate in governance decisions, influencing the future development and upgrades of the Solana network.

Solana's utility, accessibility, and active community have kept the SOL token among the top altcoins since its launch, but recent improvements have made it even more attractive for traders.

Recent development updates boost SOL

This week's SOL price gains also follow the launch of two new features, "Actions" and "Blinks", that facilitate on-chain transactions across the Internet.


  • Solana Actions enable users to perform on-chain transactions across websites, apps, and even QR codes, simplifying integration for developers who want to build easy-to-use blockchain tools on the web.


  • Blinks (a portmanteau of "blockchain" and "link") allow users to turn on-chain actions into shareable links. Users can now initiate Solana transactions from any website or app where links can be shared, enabling activities such as voting, donating, minting NFTs, swapping tokens, and making payments directly on social media platforms. These Blinks can also be shared on messaging apps and other online spaces, integrating blockchain transactions into everyday internet activities and driving demand for SOL.

These features greatly increase accessibility for most Internet users who engage with the web and online finance through popular social media and messaging platforms, marking Solana as a promising vehicle to bring crypto truly mainstream.

Solana's TVL hits highest point since October 2022

Solana's bullish momentum is further supported by consistent growth in its network usage, evidenced by the increasing total value locked (TVL) across its ecosystem. As of 25 June, Solana's ecosystem holds 31.11 million SOL, the highest since October 2022. This marks a 300% increase in TVL this year and a 350% rise from its local low of around 9 million SOL in November 2023.

A higher TVL indicates more active users and developers on the Solana network, reflecting increased demand for the cryptocurrency. This growing engagement enhances investor confidence, showcasing the network's robustness and adoption, which typically translates into higher buying interest and upward price momentum.

106,000 new altcoins on Solana

Solana's high-speed and low-cost transactions make it an attractive platform for developers aiming to launch new tokens quickly and efficiently. The network's ability to process thousands of transactions per second provides an ideal environment for token creation and trading.

According to data from the portfolio platform StepFinance, over 106,000 new tokens have been created on the Solana blockchain this week. It's important to note that this count does not include non-fungible tokens (NFTs) built on Solana.

While some of these altcoins turned out to be rug pulls or flash-in-the-pan meme coins, the figures are still a good indication of Solana's popularity with developers and staying power in the blockchain space.

Will Solana break $150 in July?

From a technical standpoint, SOL's current price gains are part of a recovery after testing a support confluence around $130. This confluence includes a 200-day exponential moving average, a horizontal trendline, and an almost oversold daily relative strength index (RSI).

SOL now targets a rebound toward its 50-day EMA at around $150 by the end of June. A decisive break above $150 could push the price toward $200, near Solana's year-to-date high. Conversely, if the bears break below the support confluence, it could drive Solana's price toward the psychological support level of $100 in July.

Trade Solana and more with StormGain

Solana's recent price surge, alongside its rapid network growth and increased institutional interest, marks a pivotal moment for the cryptocurrency. This development, coupled with Solana's ongoing technological advancements, sets the stage for sustained growth and innovation within the Solana ecosystem.

As Solana continues to evolve and solidify its position in the market, investors and developers are likely to encounter enhanced opportunities and reduced risks. Solana's resilience and the robustness of its network further bolster its appeal as a leading digital asset in the ever-expanding world of blockchain technology.

Amid these exciting market dynamics, traders and investors need a reliable platform to capitalise on opportunities. Among the options available, StormGain stands out as a comprehensive trading platform, accessible on the web or via an intuitive smartphone app, designed to meet the needs of both novice and experienced traders.

StormGain offers a comprehensive platform for trading cryptocurrencies like Solana. With advanced trading tools, low fees, and a suite of educational resources to help users make informed trading decisions, StormGain empowers you to:

Key features and benefits of StormGain:

  • User-friendly interface: Accessible for beginners while advanced enough for seasoned traders.
  • Diverse trading Instruments: Trade Solana alongside other cryptocurrencies, tokenised stocks, and crypto indices.
  • Integrated wallet: Securely store your digital assets with StormGain's integrated wallet.
  • Competitive fees: Benefit from low trading fees to maximise your profits.
  • Educational resources: Enhance your trading knowledge with articles, webinars, and a demo account to test strategies.
  • 24/7 support: Access round-the-clock customer support in multiple languages.
  • Passive income: Use StormGain's staking tools and integrated Bitcoin cloud miner to earn passively while you trade.

Ready to take your crypto trading to the next level? Take just a few seconds to sign up with StormGain today and start trading Solana and other top cryptocurrencies!

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