Updates on Solana (SOL) Status

Long-Term Outlook

• Updates from SOL Strategies and Galaxy bolster a bullish long-term outlook.

Short-Term Challenges

• SOL’s short-term remains choppy amid low retail interest.

Institutional interest in Solana (SOL) has stayed strong despite its lackluster price performance. On March 7th, Canadian-based SOL Strategies, a leader in corporate treasury via SOL, acquired an additional 24,000 tokens worth $3.3 million. The firm now possesses a total of 250,700 SOL and has broadened its service offerings in the ecosystem to include validator and staking services. According to the company, this latest purchase will enhance its validator operations.

> “This ongoing accumulation aligns with the company’s strategy of amplifying its SOL holdings to support its validator operations and long-term investment outlook in the Solana ecosystem.”

Antanas Guoga, the Chairman of SOL Strategies, indicated that the firm plans to buy more SOL during any forthcoming “market meltdown.”
In recent times, the firm’s stock (CYFRF) has faced pressure due to SOL losses, plummeting 51% from $4.20 to $2.00. Nevertheless, it is still enjoying post-U.S. election gains of 156%.

Galaxy Digital Involvement

In another development, Galaxy Digital withdrew 282,500 SOL, valued at $40.5 million, from centralized exchanges and staked approximately $39.15 million (274,253 tokens), as detailed in a report by LookOnChain.

Generally, an increase in staking signals a bullish inclination and long-term trust in the ecosystem. Simply put, major players remain optimistic about SOL’s outlook, despite the short-term volatility.

Meanwhile, retail interest in the token has diminished significantly since the TRUMP memecoin launch in mid-January. This drop reflects in low social volume and feeble sentiment following the LIBRA memecoin collapse.

Although sentiment briefly improved following the announcement of CME Futures on March 1, this momentum did not last long. Unless metrics improve, SOL’s recovery prospects will likely remain challenging in the short term.

On the prediction platform Polymarket, many bettors believe that the altcoin will decline to $130 by the end of March. Interestingly, Options traders on Deribit are targeting $200 for end-March expiry, despite only assigning a 10% chance for SOL to reach this goal.

The $120 price region has served as a crucial support level since early 2024. Bulls may attempt to defend it should downside risks extend to this zone.