3 Reasons Why Solana (Sol) Price Over $140

Solana’s native token Sol (Sol), won 8.5% on March 24th, regaining the $142 mark for the first time in two weeks. The rally reflects the profits seen across the broader cryptocurrency market as traders begin to hope for a reduced risk of recession. An increase in risk appetite can also be seen among memokines, some of which have risen to over 12% since March 23rd.

Outside of the wide-ranging market rally, Sol has its own benefits, including an increase in network activity and the direct involvement of US President Donald Trump with the Memecoin market. Furthermore, the growing interest from top traders on the exchange and the increased likelihood of approval of the Solana Exchange-Traded Fund (ETF) spot suggests the potential for growth in Sol’s price.

Despite recent gatherings, Sol has fallen 23.7% below the broader crypto market in the past two months. This weakness is associated with a 93% reduction in Solana Network fees over that period. The decline likely started with traders’ disappointment in the Memecoin sector, but it gradually affected the entire Decentralized Applications (DAPPS) market.

Sol is still 52% below its all-time high

Sol is currently 52% below its all-time high of $295, so traders are now questioning whether sales are overreactions. This happens despite Solana leaving the second largest blockchain in terms of locked total value (TVL) and ranking third in Onchain volumes. For comparison, BNB is 20% below its all-time high, while XRP is 28% below its peak.

Thron and BNB chains offer competition in terms of on-chain volume, but Solana Network’s smart contract deposits are valued at $6.8 billion. In third place, the BNB chain holds 21% less TVL and has $5.4 billion. Important highlights of Solana include the decentralized exchange of Jito Liquid Staking Solution, Kamino Lending and Ryutidity Platform, and Jupiter.

The Solana network is currently more expensive than the Ethereum base tier fees, exceeding $1 million per day. More importantly, Solana’s revenues have recently reached its highest level in two weeks. Although still far from the levels seen two months ago, the increase in Solana network activity suggests that it may have reached the bottom as the numbers continue to steadily improve.

By comparison, Ethereum earned a fee of less than $350,000 on March 23, and ETH supply increased as the built-in combustion mechanism failed to offset weak blockchain activity. Meanwhile, Solana offers a native staking reward rate of 7.7%, above the comparable 5.1% inflation rate, according to StakingReards data.

Trump Tweets boost Memocoin’s momentum while SolanaETF’s decision approaches

According to Coinglass data, despite the decline in Sol’s price, Binance’s top traders increased Sol’s leveraging (bull) position.

The long-term ratio among Binance’s top traders surged to 2.40 on March 23, at its highest level in over two months. Part of the excitement could be attributed to predictions for the Solana Exchange-Traded Fund (ETF) spot in the US.

The Securities and Exchange Commission is expected to issue a final verdict by the end of the year, according to Matthew Siegel, Vaneck’s head of digital assets research. Although success is not guaranteed, the final Spot Solana ETF approval sets it apart from its competitors, adding legitimacy to the assets, especially among institutional investors.

Another source of momentum comes from President Trump’s social post over the weekend. President Trump has explicitly mentioned Trump’s Memecoin and helped to create a buzz in the sector. On March 24th, Fartcoin rose 15%, Dogwifhat (WIF) rose 12%, and Pudgy Penguins (Pengu) rose 12% on the Solana Ecosystem.

Ultimately, SOL has great potential for higher profits, especially given its bullish position from the whales using leverage, given its network’s TVL and fees, especially when compared to its competitors.