Solana's August Surge Gains Momentum with Institutional Flows
Solana's August rally has been impressive, with a 40% increase in price making it the top performer among high-cap assets. This surge has also given Solana an edge over Ethereum on a relative performance basis, with the SOL/ETH ratio up by over 7%. However, when looking at the bigger picture, Solana still lags behind Ethereum on a quarterly basis, with Ethereum's 55% increase outpacing Solana's 40% jump.
Despite this, prediction markets are pricing in a high probability for Solana to reach $140 by year-end, which would represent a roughly 50% move from current levels. Breaking above the $100 resistance zone and sustaining momentum could make this target more plausible.
On-chain metrics are providing fundamental backing for Solana's rally, with network activity and DEX volume increasing significantly. The average transaction per second on the Solana network has risen to 2,100, a three-fold increase from January. Additionally, $3.15 billion worth of transactions were settled on Solana's DEXs on Friday alone, accounting for over 40% of total DEX trading volume across blockchains.
Institutional flows are also picking up, with Solana ETFs posting their best weekly inflows of 2026, totaling over $150 million. This convergence of stronger network activity, rising DEX volume, and increased institutional flows suggests that SOL's recent rally is being driven by on-chain demand and institutional flows.