Solana News: Solana Eyes $300 as Institutional Inflows Hit $706M and DEX Activity Surges

Key Takeaways:Solana ETFs and ETPs saw $706 million in weekly inflows, outpacing XRP’s $219 million, per CoinShares.DEX volumes and network fees surged, with Solana surpassing Ethereum’s 30-day volume at $129 billion.Funding rates below 6% suggest traders are cautious but not bearish — setting the stage for renewed momentum.Total value locked (TVL) rose 8% in 30 days, strengthening Solana’s position as the second-largest DeFi network.Anticipation of spot Solana ETF approvals and institutional demand could fuel a rally toward $300.Solana Poised for Major Breakout as $300 Target LoomsSolana (SOL, $221.55) is gaining momentum as traders and institutions position for a potential move toward $300, supported by rising onchain activity, record ETF inflows, and growing institutional participation.The token rebounded to $229 on Tuesday after briefly dipping to $218, as markets reacted positively to the Federal Reserve’s September minutes, which reaffirmed expectations of further rate cuts in 2025 — a macro setup favorable for risk assets like crypto.“Solana’s bull case is being reinforced by its growing DeFi ecosystem, increasing DEX activity, and massive institutional inflows,” analysts noted.Institutional Demand Accelerates Ahead of ETF DecisionsAccording to CoinShares, Solana ETFs and ETPs attracted $706 million in inflows in the week ending Sept. 5 — the highest among all altcoins and more than triple XRP’s $219 million.This surge reflects rising confidence among institutional investors ahead of expected U.S. SEC decisions on multiple spot Solana ETF applications, anticipated as early as Friday.Analysts suggest approval could act as a catalyst for Solana’s next major rally, potentially propelling prices beyond $300.DEX Activity Surges as Solana Overtakes EthereumOnchain data shows Solana’s DEX volumes surged 78% on Pump, 73% on Meteora, and 46% on Raydium in the past week.Solana’s 30-day DEX trading volume reached $129 billion, surpassing Ethereum’s $114 billion, according to DefiLlama.Meanwhile, network fees rose 22%, highlighting robust transaction activity and network health — a key metric for sustainable DeFi growth.“Network fees are critical for maintaining validator incentives and offsetting inflation,” analysts explained. “Solana’s continued fee growth signals expanding real usage rather than speculative volume.”TVL and Ecosystem Growth Reinforce Bullish OutlookSolana’s total value locked (TVL) climbed 8% month-over-month to $14.2 billion, securing an 8% DeFi market share.Top contributors include Kamino (+20%), Drift (+12%), and Orca (+12%) — each reflecting deeper liquidity and protocol engagement.By contrast, Ethereum’s TVL rose only 3%, while Tron’s grew 6%. Solana’s acceleration underscores its growing role as the leading high-throughput, low-cost blockchain for decentralized finance and trading.Funding Rates Indicate Caution — and Room to RunDespite the strong onchain and institutional signals, SOL perpetual futures funding rates remain below 6%, the neutral level that typically marks balanced positioning.This suggests traders are not over-leveraged, leaving room for a healthy continuation rally if ETF approvals or macro catalysts align.“Cautious sentiment is actually bullish in this context,” analysts said. “It means the rally isn’t driven by excessive leverage — there’s still fuel left in the tank.”Competitive Landscape and Rotating CapitalWhile Solana gained 3% over the past week, BNB Chain’s 28% surge and memecoin-driven rally briefly diverted trader attention.However, Solana’s broader fundamentals — rising institutional exposure, deeper liquidity, and expanding developer activity — continue to reinforce its long-term position.“BNB’s short-term momentum doesn’t change Solana’s structural trajectory,” one analyst commented. “SOL remains one of the strongest-performing layer-1 assets of 2025.”All Eyes on ETF ApprovalsIf the SEC approves spot Solana ETFs as expected, inflows could accelerate further, adding institutional legitimacy and deepening market liquidity.With TVL rising, DEX activity hitting new highs, and institutional demand surging, Solana’s path toward $300 appears increasingly plausible — provided it maintains its current momentum through ETF season.