Solana Price Consolidates Around $100 as Institutional Demand Remains Strong

Solana's price edged lower on Tuesday after a 3% rise at the start of the week, maintaining its consolidation around the $100 psychological mark. The layer-1 blockchain continues to attract institutional confidence, with $11 million in inflows on Monday.

Transaction activity is increasing on the Solana network, driving up revenue and real economic value as transaction sizes increase. The recent SIMD-0385 upgrade introduced Transaction V1, allowing for larger transaction sizes of up to 4,096 bytes.

The upgrade enables zero-knowledge features and more complex routing, according to Jacob Creech, VP Tech at Solana Foundation. Blockworks data shows that Solana collected $45.35 million in revenue last week, up from $32 million in the previous week.

Solana retains its institutional strength with Exchange Traded Funds (ETFs) recording $11.01 million in inflows on Monday. This extends the streak of 11 consecutive weekly inflows, including $14.62 million and $193.54 million in inflows in July and August.