Solana (SOL) surges 10.02% amid strong DeFi growth and network upgrades, sparking speculation it could break $200 soon - IcoHolder.
Solana (SOL) experienced a significant rally on Thursday, May 8, surging 10.02% to reach $160.32, marking its highest price since March 3. The impressive jump has sparked speculation that the cryptocurrency could soon break past the $200 mark. This surge is attributed to a combination of rising decentralized finance (DeFi) activity, strong market sentiment, and recent network upgrades.
A key milestone for Solana's DeFi ecosystem came on Wednesday, May 7, when DeFi volumes on the network surpassed $800 billion for 2025. While January accounted for a large portion of this volume, continued strong performance in the following months signals sustained investor interest in the Solana ecosystem. This momentum is expected to fuel the SOL rally further.
Tracy Jin, COO of MEXC, pointed out that the current price action of Solana suggests a transition from a growth phase to a more mature market position. She believes that if SOL maintains its current price level, it could see a breakout above the key $153 resistance level, opening the path for a potential rise to $180 or even $200.
The surge in Solana's value is also tied to a shift in how the market perceives the blockchain. According to Jin, the growing strength of Solana’s ecosystem and Ethereum’s relative weakness are contributing to Solana’s increasing appeal, particularly among institutional investors. The rise of new platforms on the Solana network, such as Pump.fun, Radium, and Axiom, has further solidified its position in the competitive landscape of Layer 1 (L1) and Layer 2 (L2) chains.
Solana's growing institutional appeal is also expected to be bolstered by the upcoming launches of Solana exchange-traded funds (ETFs), which could further attract institutional capital to the network. Investors are now eyeing Solana as a serious contender in the cryptocurrency space, with many anticipating continued growth fueled by its expanding DeFi ecosystem.
