Solana (SOL) Price: ETF Inflows Reach $857 Million as Alpenglow Launch Nears

TLDR

• Solana price has rebounded 25% and is trading around $143, approaching the $150 psychological level
• The Alpenglow upgrade will reduce transaction finality from 12.8 seconds to 100-150 milliseconds by replacing Proof-of-History and TowerBFT systems
• Solana handled 1.8 billion transactions in December, more than the top ten other networks combined
• Spot Solana ETFs have attracted over $90 million in inflows this month, bringing total inflows to $857 million
• Network growth has slowed from 30.2 million new wallets in November 2024 to 7.3 million in recent months

Solana price has climbed 25% in recent weeks, moving from $116 to around $143. The cryptocurrency is approaching the $150 mark as traders watch for the next move.

The network is preparing for its Alpenglow upgrade, which represents the largest protocol change since Solana launched. This upgrade will replace two core systems: Proof-of-History and TowerBFT.

The changes will dramatically speed up the network. Transaction finality will drop from 12.8 seconds to between 100 and 150 milliseconds. This would make Solana one of the fastest blockchain networks available.

Two new mechanisms will power these improvements. Votor will finalize transactions in one round. Rotor will replace the current Proof-of-History system with an updated model.

The upgrade comes as Solana shows strong network activity. The blockchain processed 1.8 billion transactions in December. This number exceeds the combined total of the top ten other networks.

This month, the network has already handled over 977 million transactions. Active addresses on the platform reached 67 million in December. The network generated more than $18 million in fees during that month, leading the crypto industry.

ETF Interest Grows

Spot Solana ETFs are seeing steady inflows. These funds have added over $90 million in January. Total cumulative inflows now stand at $857 million.

Institutional interest continues to build. Two U.S. banks are now settling USDC transactions on Solana, according to Visa’s Head of Crypto, Cuy Sheffield.

Technical Patterns Form

The daily chart shows Solana forming a cup-and-handle pattern. This is a bullish continuation signal in technical analysis. The price has moved above the 50-day Exponential Moving Average, which now acts as support.

Analysts point to $200 as the next target level. This price represents a key psychological barrier. It also marks the upper resistance line on the Murrey Math Lines indicator.

However, network growth has slowed recently. November 2024 saw 30.2 million new wallets created. Recent months have only added 7.3 million new wallets. This slowdown raises questions about user engagement.

New wallet creation typically drives price momentum. Fewer new users can reduce on-chain activity and trading volume. The next few weeks will show whether Solana can restart wallet growth.

Solana currently trades at $143.61 and faces resistance at $145. Breaking above this level could attract more retail and institutional buyers.

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