As Bitcoin (BTC) 
$64,336 consolidates around the $110,000 mark and Ethereum (ETH) 
$1,874 pauses after hitting new highs, Solana 
$74 (SOL) has emerged as one of the most notable players in the crypto market.
Institutional Shifting Towards Secondary Altcoins
Solana was trading around $211 on Monday, marking a 33% increase from its low at the beginning of August, making it one of the best-performing assets on the CoinDesk 20 Index over the past month. During the same period, Solana gained 34% against Bitcoin and 14% against ETH since mid-August, highlighting its growing appeal.
According to some experts, this rise indicates that investors are gravitating towards a broader spectrum of altcoins. Sergei Gorev, Head of Risk at YouHodler, noted, “The redistribution of profits among cryptocurrency holders continues,” pointing out that liquidity is shifting from Bitcoin to secondary tokens, with Solana experiencing significant capital inflows. He suggested that this trend could be long-term as institutional investors seek large and liquid projects, citing Solana and XRP as “the next exciting market ideas.”
Dorman: Solana Could Mirror ETH’s Growth Strategy
Jeff Dorman, Chief Investment Officer at Arca, proposes that Solana could mimic the trajectory witnessed by Ether earlier this year. Dorman recalled Ether’s approximately 200% rally since April, driven by stablecoin adoption, strong ETF inflows, and continual demand from digital asset treasuries (DATs). In a new report, he wrote, “Solana appears poised to replicate Ether’s strategy over the coming months.”
Dorman mentioned that the first Solana ETF listed in the U.S. was based on futures and noted that asset managers like VanEck and Fidelity have applied for spot Solana ETFs, with decisions expected later this year. He further added that at least three Solana-focused DATs have raised funds, potentially channeling up to $2.65 billion into Solana next month.
Given that Solana’s market valuation is about one-fifth of Ether’s, it is highly sensitive to these inflows, meaning its price could react significantly. Dorman remarked, “Currently, Solana might be the most obvious ‘long’ position,” posing the question, “If ETH’s price rose almost 200% on about $20 billion of new demand, what might happen if Solana receives $2.5 billion or more in new demand?”
Recent news has also fueled Solana’s momentum. Galaxy Digital, a digital asset holding listed on Nasdaq, tokenized its shares on Solana. Furthermore, the approval of the Alpenglow upgrade is expected to enhance transaction speed and certainty.
