In recent days, Solana has shown impressive growth, trading above the $200 mark. This is connected to the formation of a rare golden cross and active DeFi development on the platform.
Golden Cross and Technical Analysis
Solana has sustained a recovery above the $200 level, reaching nearly $209.95. The rare golden cross on the SOL/BTC chart has attracted attention as it is historically associated with parabolic rallies. This phenomenon, characterized by the 50-day simple moving average crossing above the 200-day SMA, has historically led to significant profits. After a similar signal in early 2021, Solana increased by over 1,900% against Bitcoin. A repeat of this trend in 2023 contributed to a 1,000% rise to $250 off a $20 start. Market analysts noted that previous golden crosses coincided with major alt seasons where capital shifted from Bitcoin to tokens like Solana.
DeFi Dynamics on Solana
The fundamentals of Solana are also promising. According to DeFi Llama, the total value locked (TVL) of decentralized finance protocols operating on its network has reached $11.7 billion, a peak as of January 2025. User participation in DeFi protocols like Kamino is increasing, indicating growing trust in the ecosystem and supporting price momentum. The network crossed the $10 billion mark in July, showcasing a significant turnaround after earlier declines in the year.
Strengthening Institutional Investments
DeFi Development Corp. has increased its Solana holdings by purchasing 407,247 SOL valued at around $77 million. This acquisition brings its total treasury to over 1.83 million tokens, valued at about $371 million. This transaction was supported by the proceeds from a recent equity raise. The Solana per share ratio for DeFi Development rose to 0.0864 or $17.52 per share outstanding. An increase in share count and potential warrant exercises indicate a growing institutional trust in the asset.
The overall trend for Solana indicates positive changes with the strengthening of institutional investments and rising metrics in DeFi. This suggests potential growth and stability for the platform.
