Solana jumps 12% above $200, analyst cites renewed confidence and liquidity

Solana rose 12.26% in the past 24 hours leading up to 10:30 p.m. on Monday to trade at $203.5, according to The Block’s Solana price page. This is the cryptocurrency’s highest level since Feb. 5.

“The $200 level marks a key psychological and technical milestone for Solana, signaling renewed investor confidence and stronger market liquidity,” said Vincent Liu, chief investment officer of Kronos Research. “Breaking this threshold often attracts more buyers and can set the stage for further upside momentum.”

Analysts said there are several factors that contributed to Solana’s surge. LVRG Research Director Nick Ruck pointed to the Jito Foundation’s Block Assembly Marketplace (BAM), a new architecture that plans to redefine how blocks are built on the Solana network.

BAM aims to bring transparency and verifiability to transaction sequencing on Solana, fostering programmable innovation and opening new revenue streams for builders. It also largely mitigates harmful MEV, among other updates. BAM is expected to launch on the Solana mainnet in the coming weeks.

“Investors were bullish as the development would greatly enhance the efficiency of Solana transactions with more privacy and flexibility across the network,” Ruck said. “Traders believe that Solana has been oversold as developers continue to build on the blockchain despite the downfall of the memecoin market.”

Kronos’ Liu said Solana benefited from the DeFi Development Corp’s (DFDV) announcement yesterday that it raised $19 million and purchased 141,383 SOL, bringing its Solana treasury to 999,999 SOL.

Liu also highlighted increasing trader optimism about a Solana ETF potentially launching this October.

“With Solana ETF optimism building ahead of the October 10th U.S. decision, liquidity is deepening and momentum is shifting fast, altcoins are leading the charge,” Liu said.

Meanwhile, bitcoin edged down 0.65% to trade at $117,182, while Ethereum, XRP and BNB made modest gains of around 1%. Bitcoin’s dominance of the crypto market stands at 60.6%, down 7.5% in the past month.

“Ethereum and other altcoins have found the start to a new bullish trend against BTC, as a recent rally has sent many major altcoins to highs not seen since last year,” said Nassar Al Achkar, chief strategy officer at CoinW exchange. “We expect that Ethereum will climb back higher against BTC due to institutional support of new reserve strategies while investors fear missing out on an ETH surge similar to bitcoin’s rush to $120k this year.”