Solana Price Surges 68% in Two Months, But Can It Sustain Growth?
Solana's price surged by 68% over the past two months to reach $124, bringing it close to breaking even for the year. This growth coincided with the SEC's announcement on September 17 regarding an exemption for tokenized stocks, where Solana is a leader among blockchains.
The rally has been impressive, but some caution is warranted as rapid price increases often attract momentum traders who can quickly exit the market. Over the past year, Solana has experienced a significant drop of 40.5%, which is steeper than Bitcoin's 23.2% and Ethereum's 33% declines.
The Alpenglow upgrade is set to reduce transaction confirmation times from around 12.8 seconds to just 150 milliseconds, but its launch requires 95% of staked SOL to adopt the software first. A smooth launch could drive SOL past $149, signaling a more significant run, while a return of ETF buying could also support growth.
The current market conditions are relatively calm, with the VIX index falling to 14.2 on September 22, which can benefit speculative assets like cryptocurrencies. However, for Solana to sustain its rally, new money must flow into the crypto space or current holders must shift their assets into SOL.