Solana’s Resurgence: Record Activity Fuels Optimism for 2026

The cryptocurrency Solana (SOL) is entering 2026 with significant momentum, marked by a powerful recovery that has seen it reclaim key technical levels. This resurgence is being driven by a dual engine of rampant speculative trading and a notable return of institutional capital through exchange-traded funds (ETFs).

A clear signal of growing professional investor confidence emerged on January 5th, when spot Solana ETFs—approved in late 2025—recorded net inflows exceeding $16 million. This marked the strongest single-day inflow since mid-December. Cumulative inflows into these regulated investment vehicles are now approaching the $800 million threshold, suggesting asset managers are using recent price levels to establish strategic, long-term positions. This institutional activity appears largely decoupled from the short-term volatility dominating other parts of the ecosystem.

Network Activity Reaches a Fever Pitch

Underpinning the price movement is extraordinary on-chain activity. The Solana decentralized finance (DeFi) sector has processed a staggering $6.7 billion in trading volume within a 24-hour period, currently surpassing the combined activity of all other Layer-1 and Layer-2 competitors. This surge is primarily fueled by a new wave of speculation around meme-coins, such as BONK, traded on platforms like Pump.fun. Unlike previous market cycles, this retail-driven hype translates directly into fundamental network utility, as every transaction generates demand for SOL to pay required network fees.

Should investors sell immediately? Or is it worth buying Solana?

Technical Picture Shows Notable Improvement

The fundamental demand is now reflecting in SOL's price chart. Trading around $136, the asset has climbed back above its 50-day moving average for the first time since October. Market observers interpret this move as a preliminary indication that a floor may be forming following the correction phase in late 2025. Furthermore, open interest in the derivatives market has risen to $3.35 billion, signaling fresh capital entering with bullish expectations. Despite this progress, SOL remains approximately 42% below its 52-week high near $234.

Key Levels and Future Catalysts

For the current recovery to evolve into a sustained bullish trend, SOL must convincingly break through the historical resistance zone between $150 and $160. In the near term, bulls will need to defend the support level around $130 to maintain positive momentum. Looking ahead, the planned "Alpenglow" network upgrade scheduled for this year promises a substantial increase in transaction processing speed, a development expected to further enhance Solana's appeal to institutional and traditional finance sectors.