Recent significant withdrawals of Solana (SOL) from exchanges and a growing interest from institutional investors have sparked expectations of a price increase. The Alpenglow upgrade, which enhanced network speed, also played a role in this process.
Large Investor Withdrawals and Market Supply
Recently, Solana has faced a notable supply shock due to over $23 million in SOL withdrawals by major investors. Institutional players like Grayscale and Fidelity are engaging through ETF initiatives. Major wallets are channeling 60% of withdrawn SOL into staking, indicating strong commitment among holders.
Expected Price Increase to $255
Given the supply shock, experts predict an expected price surge of SOL. Analysts forecast a rise to $255 by July 2025. Anticipated institutional investments in SOL are also expected to significantly increase, potentially creating additional demand.
Historical Parallels with ETF Movement
Historically, supply pressure created by ETFs has led to volatile growth in cryptocurrencies. The current SOL withdrawals resemble previous events with other cryptocurrencies that exhibited similar price trends.
The situation in the Solana market, driven by significant withdrawals and increasing institutional interest, presents potential for substantial price growth. Expectations of a price increase to $255 are based on historical data and current market conditions.
