Solana at $250: Is Galaxy Digital Driving the Surge or Playing a Longer Game?
Back in January 2023, Solana was trading near $8, written off by many in the aftermath of the FTX collapse, which unleashed millions of tokens onto the market and seemingly buried the project for good. Few realistically expected the so-called “Ethereum killer” to not only survive but also evolve into a prime hub for meme coins, with its native token now approaching the $300 mark.
While SOL still trades below its all-time high, its 20% rally over the past week has reignited optimism. A significant catalyst has been Galaxy Digital, which purchased over $1.3 billion worth of SOL during this period. The question arises: is this market manipulation or a deliberate long-term strategy?
Institutional Capital in Motion
At the time of writing, Solana
SOL Price
(SOL) is trading near $235 following Galaxy Digital’s massive $1.35 billion acquisition. Blockchain data shows that hundreds of millions worth of SOL were withdrawn from centralized exchanges such as Coinbase and Binance into wallets linked to the firm.
The 20.5% weekly surge pushed Solana’s market capitalization above $135 billion, setting a new record and surpassing its previous high of $127 billion. While the token once traded near $290 in early January, subsequent supply increases diluted that peak valuation. Analysts note that if SOL returns to the $294 region, its market cap could exceed $180 billion, cementing its place among the largest digital assets.
Market cap of Solana (SOL), source: CoinMarketCap
As one post from the Solana community on X stated:
“The right application, at the right time, could bring in a billion new users to the Solana network and change everything. The network is ready. Are you?”
Manipulation or Forward-Looking Stategy?
The size and timing of Galaxy Digital’s accumulation raise important questions. In just one week, the firm accumulated 5.82 million SOL, marking one of the boldest altcoin purchases in crypto history. Moves of this scale inevitably reduce circulating supply, amplify volatility, and can trigger a perception of artificial price support—a classic hallmark of market manipulation.
On-chain data confirms the transactions from Coinbase and Binance to the wallet of Galaxy Digital.
However, the positioning also suggests something more strategic. By moving early, Galaxy Digital may be front-running the expected retail-driven bull cycle. Solana’s performance so far in September has been striking: +23.4% compared to Bitcoin (+6.92%) and Ethereum (+6.45%). This divergence points to the third phase of an “altseason,” where major alternative cryptos significantly outperform flagship coins.
In the meantime Multicoin’s Solana Fund has reportedly accumulated $1.58 billion worth of SOL, adding further bullish momentum to the asset.
As one market commentator put it:
“They’re not buying the top of the cycle. They’re positioning ahead of something bigger.”
Fundamentals Supporting the Rally
It is worth noting that SOL’s momentum is not solely the result of Galaxy Digital’s capital influx. The total value locked (TVL) across the Solana ecosystem has crossed $13.3 billion, setting new records for DeFi platforms such as Jito, Kupiter, and Raydium.
Network activity, although lower than during the meme coin frenzy, continues to rise steadily, underscoring persistent demand from both institutional and retail users.
From a technical perspective, SOL’s RSI currently sits at 54/100, well below overheated conditions seen during major rallies in late 2021 and early 2024. This technical backdrop has reinforced bullish forecasts, with analysts eyeing near-term price targets in the $290–$360 range and longer-term projections extending to $510–$750. Some of the most aggressive predictions do not rule out a move toward $1,000 over the next three to six months.
Technical Analysis of Solana (SOL), source: TradingView.com
A Cautious Note
Despite the staggering 30x increase in Solana’s price over the past 2.5 years, caution remains warranted. Sharp institutional inflows, combined with narrative-driven momentum, can distort organic price discovery. Still, current conditions suggest Solana’s surge is not merely another pump-and-dump cycle but rather underpinned by strengthening ecosystem fundamentals and accelerating adoption trends.