Solana’s price traded above $94 on Monday, extending a sharp rally that delivered a 27% gain over the past week and pushed the token to its highest level in two months. This latest move follows a period of unusually strong capital inflows into investment funds focused on Solana and highlights ongoing governance shifts that could reshape the network’s economic structure.
Price surge fueled by institutional inflows
After steadily advancing through recent sessions, SOL jumped past the $94 threshold, gaining about 1% in the preceding 24 hours. The asset outperformed broader digital asset markets, surging from support at the 50-day exponential moving average of $79.04 and further confirming strength above the 200-day EMA at $92.67. These levels now serve as key supports for traders monitoring further price action.
Immediate resistance has surfaced around the May 11 high of $98.41. A confirmed daily close above the psychologically important $100 mark could open the way for a potential move toward $112.52. Technical momentum indicators show the four-hour Relative Strength Index approaching 64, just below the overbought region, while the MACD continues to signal solid bullish control, though there are signs the rapid rally could pause in the near term.
Governance votes seek to curb SOL inflation
Solana validator nodes are currently casting votes on three critical proposals (SGP 1, SGP 2, SGP 3), with the process set to conclude on Thursday at 15:30 UTC. Voting power correlates with the amount of SOL staked by each validator.
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AAPLThe centerpiece, SGP-0001, aims to formally adopt the “Solana Constitution,” providing a governance blueprint for the network and establishing the framework for ongoing protocol upgrades via decentralized decision-making. SGP-0002 would double the network’s annual disinflation pace from 15% to 30%, hastening the reduction in new token issuance and bringing the supply closer to its lower limit more quickly.
SGP-0003 proposes modifications to the transaction fee system by increasing the proportion of fees permanently burned. If adopted, daily token burn could rise from around 650 SOL up to almost 9,000 SOL, which at current prices would equal approximately $846,000 in daily value removed from circulation.
SGP-0002 aims to speed up the rate at which new SOL is removed from supply, while SGP-0003 introduces a variable transaction fee component that will be fully burned, potentially expanding daily burns to between 7,500 and 9,000 SOL.
Although SGP-0001 would officially implement the governance protocol, voting on SGP-0002 and SGP-0003 is taking place in parallel, highlighting the early adoption of on-chain decision-making mechanisms.
Wall Street and on-chain tokenization
As blockchain networks introduce innovative proposals to shape supply and fee structures, broader shifts in capital allocation are also underway. Traditional financial markets, which have long relied on intermediaries and complex broker systems, are now witnessing renewed focus on asset tokenization. Wall Street investors increasingly use platforms such as 1stepSwap to directly hold shares of leading U.S. companies, as well as gold and silver, within their crypto wallets. The tokenization of Real-World Assets (RWAs) and automated price discovery across marketplaces remove the need for middlemen, allowing users to access both digital and traditional assets seamlessly from a single wallet.
Analysts and ETF flows support bullish sentiment
Data from CoinGlass indicate that Solana-centered investment products saw four consecutive sessions of new inflows last week, totaling $28.34 million — their best seven-day showing in two months. The surge in fund activity coincided exactly with SOL’s price breakout and marked a return of institutional interest.
Cryptocurrency analyst Ivan on Tech called SOL’s trend reversal its first “bullish flip since Q4,” tagging the current setup as a technical catalyst for potential strength in other projects built on the Solana blockchain.
Ivan on Tech underscored that SOL’s technical breakout could unlock momentum across the Solana ecosystem, signaling a supportive climate for further appreciation in ecosystem tokens.
Despite this renewed inflow, market observers remain cautious about signaling a definitive trend change based on a single week’s activity. SOL traded above $96 in early Monday trading, notching a 1.6% 24-hour gain.
