Solana Builds Strong Case for Higher Valuations as ETFs and Network Metrics Surge

Overview

Solana is positioning itself for potential growth in the coming years, fueled by increased on-chain activity, a rise in decentralized finance (DeFi) engagement, and growing institutional interest through exchange-traded funds (ETFs). Recent developments indicate that the network’s fundamentals are strengthening, which could support a more favorable valuation for Solana.

Recent Developments in Solana

Multiple factors are contributing to Solana’s optimistic outlook. On-chain activity has seen a significant uptick since the beginning of the year, with active addresses increasing from around 3.38 million to 3.78 million in early January. This surge indicates a broader participation in various activities such as transfers, trading, and application usage on the network.

In tandem with this rise in user activity, Solana’s decentralized finance metrics have also shown improvement. The total value locked (TVL) across Solana-based protocols has risen from approximately $8 billion to just over $9 billion, reflecting a growing commitment to lending, liquidity provision, and yield-oriented strategies. These metrics align with longer-term data, which revealed that daily active wallets averaged 3.2 million in 2025, while non-vote transactions reached a record 33 billion over the same period.

Decentralized exchanges (DEXs) played a crucial role in this growth, with annual DEX volume reaching $1.5 trillion in 2025, marking a 57% increase year-over-year. Additionally, trading volume involving SOL-stablecoin pairs exceeded $780 billion, underscoring the robust trading activity on the network.

Revenue Generation and Ecosystem Growth

The Solana ecosystem has also seen substantial revenue generation. Applications built on the network produced $2.39 billion in revenue in 2025, representing a 46% increase from the previous year. Notably, seven applications surpassed $100 million in annual revenue, while smaller projects collectively contributed over $500 million. The network itself reported $1.4 billion in revenue, highlighting a significant rise in economic activity that is tied more to usage than mere speculation.

Beyond DeFi, Solana experienced growth in stablecoin transfers, tokenized equities, and Bitcoin-related activities. The supply of stablecoins more than doubled to $14.8 billion, with transfers reaching $11.7 trillion. This increase indicates a growing use case for settlement and payment functionalities on the network.

Institutional Interest and ETF Growth

Institutional interest in Solana has become more pronounced through Solana-focused ETFs, with assets under management across these products recently surpassing $1.02 billion. A significant portion of this capital is attributed to Bitwise’s BSOL. Cumulative inflows into these ETFs have approached $800 million, accompanied by steady trading volumes, indicating robust demand for regulated exposure to Solana.

In terms of price movement, SOL has rebounded from the $120 area to trade near $140, supported by rising trading volumes and improving technical indicators. Despite facing resistance levels, the combination of ETF inflows, increased network usage, and expanding revenue streams strengthens the argument for higher valuations, provided that broader market conditions remain favorable.

From author

The developments surrounding Solana illustrate a network that is not only recovering but also actively expanding its reach and functionality. The increase in on-chain activity, coupled with rising institutional interest, suggests that Solana may be on the cusp of a more substantial valuation support, reflecting its growing importance in the broader cryptocurrency ecosystem.

Impact on the crypto market

• Increased on-chain activity highlights Solana’s growing user engagement.
• Rising DeFi metrics suggest a strengthening financial ecosystem within Solana.
• Significant revenue generation indicates a shift from speculative to usage-based economic activity.
• Institutional interest through ETFs could lead to more mainstream adoption of Solana.
• Overall market conditions may influence Solana’s valuation trajectory, given its strengthening fundamentals.