3 Reasons Solana (SOL) Could Break Above $140

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Solana’s native token, SOL, surged 8.5% on March 24, reclaiming the $142 level for the first time in two weeks. This rally mirrors a broader upswing across the cryptocurrency market, driven by growing investor optimism and a decline in perceived economic recession risks. Increased risk appetite is also evident in the meme coin sector, where several tokens have gained over 12% since March 23.

While macro market trends play a role, SOL’s momentum is being fueled by unique on-chain dynamics and external catalysts that point to sustained upside potential. From rising network activity to growing institutional interest and regulatory anticipation, Solana is showing signs of recovery after a prolonged downturn.

👉 Discover how Solana's ecosystem is gaining momentum in 2025

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Network Fundamentals Show Signs of Recovery

Despite recent gains, SOL has underperformed the broader crypto market by 23.7% over the past two months. This lag correlates with a dramatic 93% drop in network fees during the same period—an alarming figure that initially stemmed from cooling enthusiasm in the meme coin space but eventually impacted the entire decentralized application (DApp) ecosystem.

However, early indicators suggest a bottom may be forming. After hitting lows, Solana’s daily network fees have rebounded above $1 million—now surpassing Ethereum’s base layer fees, which stood below $350,000 on March 23. This shift highlights Solana’s growing appeal as a cost-efficient, high-throughput blockchain capable of handling heavy transaction volumes without congestion.

Additionally, Solana’s protocol revenue recently hit its highest level in two weeks, signaling renewed usage and developer engagement. Though still below peak levels from earlier cycles, the stabilization of key metrics suggests the network may have weathered its worst phase.

Staking fundamentals further strengthen SOL’s value proposition. According to StakingRewards, Solana offers an attractive 7.7% annual staking yield, outpacing its estimated inflation rate of 5.1%. This positive yield differential rewards holders while maintaining long-term supply discipline—an increasingly important factor for institutional-grade assets.

Market Sentiment and Whale Activity Turn Bullish

Even during periods of price weakness, top traders on Binance have been increasing their leveraged long (bullish) positions in SOL. As of March 23, the top trader long-to-short ratio on Binance surged to 2.40, the highest level in over two months.

This surge in whale interest reflects growing confidence among sophisticated investors who often anticipate macro shifts before retail markets react. Their positioning could foreshadow stronger inflows into SOL as sentiment improves and technical resistance levels break.

Moreover, meme coins built on Solana—such as Fartcoin, Dogwifhat (WIF), and Pudgy Penguins (PENGU)—saw double-digit gains on March 24, with increases ranging from 12% to 15%. While speculative, this resurgence indicates renewed user engagement within the Solana ecosystem.

👉 See how top traders are positioning for the next crypto surge

FAQ: Understanding Whale Behavior and Meme Coin Influence

Q: Why do whale trades matter for SOL’s price?
A: Large traders often have access to advanced analytics and market intelligence. When they increase leveraged long positions, it typically signals strong conviction in future price appreciation.

Q: Are meme coins really influencing Solana’s fundamentals?
A: While meme coins are highly speculative, they drive user onboarding, transaction volume, and fee generation. A vibrant meme ecosystem can indirectly boost network health and attract developers.

Q: How does Solana compare to Ethereum in terms of fees and speed?
A: Solana processes transactions faster and at significantly lower costs than Ethereum’s base layer. With average fees now exceeding Ethereum’s, it indicates higher demand and usage relative to capacity.

ETF Prospects and Regulatory Tailwinds Build Momentum

One of the most significant catalysts for SOL’s recovery is the possibility of a spot Solana exchange-traded fund (ETF) approval in the United States. According to Matthew Sigel, VanEck’s Head of Digital Asset Research, the U.S. Securities and Exchange Commission (SEC) is expected to make a final decision by the end of 2025.

While no outcome is guaranteed, an ETF approval would be transformative for Solana. It would provide regulated exposure to institutional investors, enhance market legitimacy, and likely trigger substantial capital inflows—similar to what occurred with Bitcoin and Ethereum ETFs.

ETF speculation has already begun shaping market dynamics. Increased media coverage, analyst upgrades, and derivatives positioning all point to rising expectations. If approved, Solana would join an elite group of cryptocurrencies with regulated investment products—giving it a competitive edge over many altcoins.

FAQ: The Impact of a Spot SOL ETF

Q: What is a spot ETF, and why does it matter?
A: A spot ETF directly holds the underlying asset (in this case, SOL), offering investors exposure without needing to manage private keys. It brings credibility and accessibility to traditional finance markets.

Q: How likely is a Solana ETF to be approved?
A: Approval depends on regulatory criteria like market size, liquidity, and anti-manipulation safeguards. Given Solana’s position as the third-largest blockchain by transaction volume and second by total value locked (TVL), its chances are improving.

Q: Which blockchains currently have spot ETFs?
A: As of now, only Bitcoin has a fully approved spot ETF in the U.S. Ethereum ETFs are under review. A Solana ETF would mark a major expansion of regulated crypto products.

Strong On-Chain Metrics Support Long-Term Potential

Despite trading 52% below its all-time high of $295, Solana remains a dominant force in decentralized finance (DeFi). It ranks:

With $6.8 billion in smart contract deposits, Solana outpaces BNB Chain ($5.4 billion) by 21% in TVL—despite increased competition from Tron and BNB Chain in transaction volume.

This resilience underscores strong developer commitment and user retention. Even during bearish phases, core projects continue launching upgrades, expanding integrations, and driving innovation.

👉 Explore how next-gen DeFi platforms are reshaping Solana’s future

Final Outlook: Is $140 Just the Beginning?

Solana’s recent breakout above $140 is more than just a technical rebound—it reflects improving fundamentals, rising institutional interest, and growing ecosystem vitality. While challenges remain, particularly around sustaining fee income and user growth, the convergence of multiple bullish factors paints an optimistic picture for 2025.

With ETF speculation building, whale accumulation accelerating, and network usage stabilizing, SOL appears well-positioned for further upside—if broader market conditions remain favorable.

For investors watching closely, Solana represents not just a speculative play but a high-performance blockchain with real-world utility, strong staking rewards, and increasing regulatory clarity on the horizon.

As the crypto market continues its recovery trajectory, assets like SOL—with proven scalability and vibrant ecosystems—are likely to lead the next leg of the bull cycle.