Solana’s native token, SOL, struggles to maintain levels above $200 due to weak onchain activity and subdued leveraged demand. While a spot ETF approval and institutional support could boost SOL above $250, current fundamentals suggest limited rally potential compared to competitors like ETH and BNB.

Investors are cautious as SOL’s onchain activity weakens, with network fees dropping 17% and transactions decreasing by 10%. Despite Solana’s $12.5 billion total value locked, its chain revenue has declined 91% since January, coinciding with the launch of the TRUMP token and memecoin frenzy.

The lack of demand for bullish leverage on SOL futures adds to the cautious sentiment, with a neutral 10% annualized premium indicating balanced demand. Binance’s top-trader long-to-short ratio has shifted towards bearish positioning, suggesting caution around SOL breaking decisively above $200.

Institutional backing and SEC actions are crucial catalysts for SOL’s price movement. Reports of Galaxy Digital, Multicoin Capital, and Jump Crypto working to raise $1 billion for a Solana-focused digital asset treasury company, as well as pending SEC decisions on Solana spot ETF filings, could impact SOL’s path towards $250.

Read more at Cointelegraph: SOL Rally To $250 May Happen In 2025