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Are bulls back?
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- Name
- DeepHorus
Solana’s native token SOL surged to a 30-day high of $83 on Friday, decoupling from the broader altcoin market downturn. The rally was fueled by a revival of memecoin activity, a surge in tokenized trading volume, and inflows of stablecoin liquidity on the Solana network. Despite this momentum, analysts question whether SOL can sustain its climb toward the $90 level.
SOL’s bullish momentum began on June 23, coinciding with cumulative tokenized stock transfers on Solana surpassing $10 billion. The launch of SpaceX shares trading by Backpack significantly boosted Solana’s decentralized finance (DeFi) utilization. Meanwhile, the total altcoin market capitalization continued its decline, hitting its lowest level since December 2023, highlighting SOL’s relative strength.
Tokenized assets on Solana reached a record high of $3.5 billion on Wednesday, up from $2.7 billion a month earlier, according to RWA.xyz. This growth was driven by corporate credit tokens and stock market indexes such as the S&P 500 and Nasdaq-100. Solana now leads the tokenized industry with 294,274 active addresses, compared to Ethereum’s 204,955.
The memecoin sector saw a resurgence after the airdrop of The Black Bull (ANSEM) on Sunday, which quickly reached a $60 million market capitalization. The token, launched on Pump.fun, involved 74,000 addresses in its first three days. This sparked gains across multiple Solana memecoins, with the Pump.fun platform token (PUMP) rising 27% weekly and entering the top-100 crypto rankings with a $630 million market capitalization.
Prediction markets also contributed to Solana’s activity, as the World prediction market integrated with Phantom wallet garnered nearly $890,000 in total value locked within two days. This project aims to compete with Polymarket during the World Cup betting frenzy. Additionally, Jupiter unveiled its prediction market beta test on June 29, further driving expectations for increased blockchain usage.
However, bullish leveraged appetite for SOL has cooled sharply since Wednesday, when the price crossed above $75. The annualized funding rate for SOL perpetual futures dropped to 3% on Friday from an 11% peak two days earlier. Under neutral conditions, this rate typically ranges from 6% to 12%, indicating that traders are hesitant to bet on further upside.
Investors remain cautious about SOL reaching $90 solely on the back of a temporary memecoin demand surge. Without sustainable demand for blockchain activity, there are no clear drivers for SOL to widen its performance gap relative to other altcoins. The coming weeks will reveal whether the current rally can be sustained or if it fades as quickly as it emerged.
