Corporate Reserves Hit Record High

Despite a broader crypto market correction, institutional confidence in Solana is soaring. Corporate entities now hold a record 20.13 million SOL, valued at over $4.6 billion. This significant accumulation, shared by blockchain expert Ted Pillows, accounts for 3.53% of the token’s total circulating supply and reveals a strong belief in the network’s future.

This capital is highly concentrated, with the entire sum distributed among just 20 organizations. This pattern suggests a strategic move by major players to establish substantial long-term positions. The reserves are fueled by a mix of protocol revenue from on-chain activity, staking rewards from its Proof-of-Stake consensus mechanism, and ecosystem donations, creating a financially sustainable model. Analysts also suggest that the recent launch of a Solana ETF with staking features could further accelerate these institutional inflows.

On-Chain Metrics Signal Strong Fundamentals

Solana’s fundamental strength is reflected in its on-chain performance, where it has recently surpassed its rivals. The network has taken the top spot for daily revenue generated by decentralized applications (DApps), recording $4.67 million in a single day and outperforming both Ethereum and its layer-2 solutions.

Trading volumes on its decentralized exchanges (DEXs) tell a similar story. With $4.87 million in volume processed during the same period, Solana temporarily overtook both Ethereum and Binance Smart Chain. This sustained activity, driven by low transaction costs and high speeds, continues to attract projects in Decentralized Finance (DeFi), NFTs, and gaming. The fees generated from this usage directly bolster the protocol’s reserves, establishing a virtuous cycle between network adoption and capitalization.

SOL Price Navigates a Critical Technical Level

From a technical standpoint, SOL is positioned at a crucial juncture. The $195 price zone has emerged as a key psychological support level, having been tested several times since early April. A definitive break below this support could lead the price toward the $180-$185 range, which aligns with the 50-day moving average.

However, several indicators point to underlying strength. Daily trading volume recently increased by over 21%, signaling sustained interest from traders even during the market consolidation. This rise in volume suggests buyers are positioning for a potential rebound. Furthermore, metrics like funding rates and open interest in the futures market show sentiment is shifting toward a neutral-to-positive outlook. Investors are now closely watching the $200 threshold, as a clear break above this level would signal a resumption of short-term bullish momentum.

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