Solana has attracted renewed attention from institutional investors, with Solana exchange-traded funds (ETFs) experiencing record net inflows since the beginning of the month. These inflows have propelled SOL to its highest price level in four months, nearing the key psychological milestone of $100.
Data from SoSoValue reveals that Solana ETFs recorded a net inflow totaling $90 million this month, surpassing the combined inflows of the previous three months. The most notable daily inflow happened on May 11, with $26 million entering Solana ETFs—the largest single-day net addition since late February. Currently, these ETFs hold net assets exceeding $1 billion, representing nearly 2% of Solana’s total market capitalization.
Despite these positive signs, derivatives trading offers a more nuanced picture of market sentiment. CoinGlass data indicates a long-to-short ratio below 1, suggesting a prevailing bearish stance among traders. Yet, trading volumes in Solana’s derivatives market tell a different story: total derivative volume has jumped by a third to $12.81 billion. Options trading activity increased even more sharply, with volume up 116% and open interest climbing 22% to $125 million.
Solana’s ascent occurs against a backdrop of broader market challenges linked to geopolitical tensions between the U.S. and Iran. The stagnation in peace talks has reignited fears of renewed conflict, which has cast a bearish shadow over the crypto sector. Rising inflation pressures related to the conflict have further contributed to the cautious environment.
Beyond capital inflows, technical and fundamental developments are supporting bullish expectations for SOL. The network is preparing to deploy the Alpenglow upgrade, the most significant consensus-level update in Solana’s history, on its mainnet later this year. This upgrade promises to boost Solana’s transaction speed by a factor of 100, potentially enhancing its competitive position.
In addition to the upgrade, Solana’s ecosystem adoption benefits from Western Union’s launch of its USDPT stablecoin on Solana’s blockchain, a move expected to increase transaction throughput and usage. Regulatory clarity could improve as well with the advancement of the CLARITY Act, legislation aimed at defining crypto regulations once approved by the Senate.
From a technical analysis standpoint, indicators suggest strong buying momentum for SOL. Research shared by crypto analyst Senior highlights that immediate resistance stands around $95, with a likely rally toward $100 if this level is breached. However, SOL’s price experienced a recent pullback, trading near $90 at the time of reporting, down over 5% in the past 24 hours according to CoinMarketCap.