3 Reasons Solana (SOL) Price Is Surging Past $140

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Solana’s native cryptocurrency, SOL, has re-claimed the $142 mark—a critical psychological and technical threshold—after an 8.5% surge on March 24. This marks the first time in two weeks that the asset has crossed the $140 barrier, signaling renewed investor confidence and broader market optimism. While much of the crypto market is rallying amid improving macroeconomic sentiment, Solana is benefiting from a unique combination of on-chain momentum, growing institutional interest, and cultural tailwinds.

But what exactly is driving this resurgence? Beyond the general risk-on environment, three key factors are fueling Solana’s latest price movement: reviving network activity, rising anticipation for a spot Solana ETF, and increased speculative momentum from meme coin enthusiasm—all converging to position SOL for further upside.

Revival in Network Activity and On-Chain Fundamentals

Despite a challenging two-month period where SOL underperformed the broader crypto market by 23.7%, recent data suggests a potential bottoming out of network activity.

One of the most telling signs is the rebound in daily network fees, which have climbed back above $1 million per day—surpassing Ethereum’s base layer fees, which stood below $350,000 on March 23. This shift is significant because high transaction fees typically reflect strong demand for block space, indicating active usage across decentralized applications (DApps).

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Moreover, Solana’s total value locked (TVL) remains robust at $6.8 billion, securing its position as the second-largest blockchain by this metric. In contrast, BNB Chain trails with $5.4 billion—21% less than Solana. This dominance is powered by leading DeFi platforms such as:

These protocols not only enhance capital efficiency but also deepen ecosystem stickiness, encouraging long-term user engagement.

Additionally, Solana’s native staking rewards currently sit at 7.7%, outpacing its 5.1% inflation rate—a rare positive yield spread that makes holding and staking SOL fundamentally attractive compared to other proof-of-stake networks.

This combination of strong fundamentals—growing fees, solid TVL, and positive staking economics—suggests that the network may have weathered its recent downturn and is now entering a phase of sustainable recovery.

Spot Solana ETF Hype Builds Momentum

One of the most powerful catalysts on the horizon is the growing possibility of a spot Solana exchange-traded fund (ETF) in the United States.

While no final decision has been made, Matthew Sigel, VanEck’s Head of Digital Asset Research, expects the U.S. Securities and Exchange Commission (SEC) to issue a ruling by the end of 2025. Although approval is not guaranteed, even the prospect of regulatory greenlighting has begun influencing trader behavior.

ETF approvals bring legitimacy. For institutional investors—who often avoid direct crypto custody—a regulated ETF product would offer a compliant, accessible pathway to gain exposure to SOL. This could unlock billions in traditional capital flows currently sidelined on the sidelines.

The ripple effects of such a development would extend beyond just new inflows. It could elevate Solana’s status from a “high-performance blockchain” to a recognized digital asset class, similar to how Bitcoin and Ethereum ETFs reshaped market perception.

Already, signs of positioning are visible. According to CoinGlass data, top traders on Binance have significantly increased their leveraged long positions in SOL, pushing the platform’s top-tier trader long-to-short ratio to 2.40 on March 23—the highest level in over two months.

This kind of coordinated bullish positioning often precedes major price moves, especially when combined with macro-level tailwinds.

👉 Explore how ETF developments are transforming crypto investment strategies.

Meme Coin Frenzy Adds Cultural Fuel

While fundamentals and institutional interest lay the foundation, cultural momentum is providing the spark.

The meme coin market—a historically volatile but highly influential segment—has roared back to life. Several Solana-based meme tokens surged over 12% between March 23 and 24, including:

This resurgence was partly fueled by unexpected attention from former U.S. President Donald Trump, whose social media posts referencing the TRUMP meme coin reignited speculative interest across retail communities. While controversial, such events highlight how deeply intertwined celebrity influence and internet culture have become with crypto markets—particularly on fast, low-cost chains like Solana.

Meme coins may seem frivolous, but they drive real economic activity. Increased trading volume, wallet creations, and NFT mints all contribute to higher network utilization and fee generation. In turn, this strengthens the underlying value proposition of the Solana ecosystem.

Even though SOL remains 52% below its all-time high of $295, it’s worth noting that other major assets like BNB (-20% from ATH) and XRP (-28% from ATH) are closer to their peaks yet haven’t seen comparable network innovation or cultural relevance lately.

FAQ: Your Questions About Solana’s Price Surge—Answered

Q: Why is Solana’s price going up now?
A: SOL’s recent rally is driven by improving on-chain activity, rising expectations for a spot ETF, and renewed retail excitement from meme coin trading—all contributing to stronger demand.

Q: Is a Solana ETF likely to be approved?
A: While nothing is certain, experts like VanEck’s Matthew Sigel believe the SEC could make a decision by late 2025. Approval would open doors for institutional investment.

Q: How does Solana compare to Ethereum in terms of fees?
A: As of late March, Solana’s daily fees exceeded $1 million—higher than Ethereum’s base layer fees, which were under $350,000. This reflects stronger current usage despite Ethereum’s larger overall ecosystem.

Q: Why do meme coins matter for Solana’s price?
A: Meme coins increase network activity, driving transaction fees and user growth. High-profile attention (e.g., from political figures) can trigger viral cycles that benefit the entire ecosystem.

Q: What is Solana’s total value locked (TVL)?
A: Solana’s TVL stands at $6.8 billion, making it the second-largest blockchain by this metric—well ahead of competitors like BNB Chain.

Q: Can SOL reach new all-time highs in 2025?
A: With improving fundamentals, ETF speculation, and strong retail engagement, many analysts believe SOL has the potential to challenge its $295 peak if macro conditions remain favorable.

Final Thoughts: Is This Just a Rally—or the Start of a New Leg Up?

Solana’s journey over the past few months has been turbulent. From network congestion concerns to declining fees and investor apathy, the chain faced real challenges. But recent developments suggest a turnaround may be underway.

With stronger on-chain metrics, growing institutional interest, and viral cultural moments aligning in its favor, Solana is no longer just playing catch-up—it’s building momentum.

While risks remain—especially around regulation and market volatility—the convergence of technical strength and market sentiment paints a compelling picture for SOL’s next chapter.

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As always, investors should conduct their own research and consider risk tolerance before making any financial decisions. But one thing is clear: Solana is back in the spotlight—and this time, it might be here to stay.