Should You Buy Solana in 2025?

Solana in brief

How much does 1 Solana cost?

The price of Solana is up this week. At £126.42, Solana reflects a 24-hour increase of +2.7% and a strong 7-day gain of +8.1%. Its market capitalisation stands at approximately £57.2 billion, putting it 5th among cryptocurrencies. The average trading volume over the past three months is around £2.8 billion, with a circulating supply of 453 million SOL and a market dominance of 3.1%. With such dynamic price movement and high market participation, Solana continues to capture attention for both its volatility and its long-term investment potential.

Our complete opinion on the Solana cryptocurrency

Have Solana’s last three years of meteoric swings revealed a new prime time for blockchain innovation? After analysing Solana’s recent trends, combining on-chain analytics, technical signals, market data, and a proprietary multi-factor competitor review, a pattern of renewed momentum emerges. So, why could Solana once again be a strategic entry point for the smart contract ecosystem in 2025?

Recent Performance and Market Context

Price Evolution

Solana (SOL) has demonstrated one of the most compelling volatility/recovery dynamics in the digital asset space. After reaching an all-time high above $250 in late 2021, SOL experienced a bearish retracement throughout 2022, catalysed by macroeconomic tightening, risk aversion, and the impact of several sector-specific events. Yet, since Q4 2023, Solana’s price has staged an impressive rebound, climbing from lows near $10 to trade near $149 in June 2024—a nearly 15x increase from its cycle bottom. This uptrend reflects growing market confidence and strong participation from both retail and institutional profiles.

Positive Catalysts and Sectoral Tailwinds

The most notable positive drivers over the last quarters include:

• Restored confidence post-FTX: Despite early association with FTX, Solana has demonstrated robust decentralisation and resilience, reducing counterparty risk and regaining investor trust.
• Record on-chain activity: Daily active addresses, on-chain swaps, and validator growth have hit record highs, underlining authentic usage.
• High developer engagement: An increasing volume of developers building on Solana, attracted by its technical stacks and funding, propels fresh innovation.

The macro context remains broadly positive for cryptocurrencies, with increasing digital asset adoption, easing regulatory uncertainty in key jurisdictions (especially in the US and Europe), renewed institutional inflows, and the prospect of future spot ETF launches for top altcoins.

Technical Analysis

Chart Structure & Momentum

Solana’s price action since late 2023 is structurally bullish, forming higher highs and higher lows on both daily and weekly timelines. Key technical indicators reinforce this view:

• RSI: The Relative Strength Index has oscillated between 54 and 68 for most of H1 2024, suggesting sustained—but not overheated—momentum.
• MACD: The Moving Average Convergence Divergence signal remains in positive territory, with histogram bars widening since May 2024—a sign of growing upward momentum.
• Key moving averages: Prices are consistently trading above their 50- and 200-day moving averages, validating a bullish trend structure.

Currently, robust support is established near $112–$120, while resistance sits at the $168–$175 band. The presence of strong buying interest at higher lows, combined with neutral-to-positive momentum oscillators, hints at a high-probability setup for a bullish continuation into the second half of 2024.

On-Chain & Market Signals

• Transaction volumes and active users have surged, with Solana regularly processing over 40 million daily transactions—far surpassing many Layer 1 rivals.
• DeFi TVL (Total Value Locked) on Solana has steadily increased, recently topping $4.6bn, placing it firmly among the top three most utilised blockchain ecosystems after Ethereum.

These on-chain data points underscore not just speculative activity, but authentic growth in core usage metrics.

Fundamental Analysis

Adoption & Ecosystem Expansion

Solana stands out for its vigorous adoption trajectory. Key pillars include:

• Scalability & low fees: Ultra-low transaction costs (fractions of a penny) and lightning-fast confirmation times position Solana as the blockchain of choice for high-throughput dApps, including DeFi, gaming, and NFT platforms.
• Strategic partnerships: Recent announcements with payment processors (Visa, Shopify plugins), real-world asset tokenisation platforms, and gaming studios are translating into tangible usage and transaction flows.
• Community & developer focus: Over 2,500 monthly active developers and a strong backing from Solana Foundation and VC partners underpin the ongoing surge in new protocol launches on-chain.

Valuation Metrics

• Market capitalisation: At ~$67bn (June 2024), Solana is now the 5th largest crypto by market cap, indicating strong market recognition but further room for growth relative to Ethereum.
• Fully Diluted Valuation (FDV): With an FDV near $86bn, the upside remains significant as ecosystem fee burns and staking uptake dynamically affect future supply.
• Total Value Locked (TVL): With over $4.6bn in TVL, Solana’s DeFi ecosystem has multiplied in value through 2023–2024—as institutional and retail staking programs expand, reinforcing capital retention.

Liquidity & Market Depth

• Exchange volume: SOL commands consistently high trading volumes, frequently ranking among the top three most traded tokens on centralised and decentralised platforms. This liquidity simplifies optimal trade execution while reducing slippage risks even during large moves.
• Dominance: Solana’s share of Layer 1 market cap has doubled in the past year, reflecting strengthened competitive positioning versus newer entrants and a relative de-correlation from Ethereum at times of network congestion elsewhere.

Structural Strengths

• Innovation edge: Features like parallel runtime (‘Sealevel’), scalable proof-of-history consensus, and recent upgrades (e.g., Firedancer validator client) combine to offer speed and reliability currently unmatched by most peers.
• Active community: Developer forums, hackathons, and a vibrant NFT community contribute to strong network effects not only in DeFi but also in the broader Web3 sector.
• Ecosystem depth: From tokenised assets to advanced DePIN (Decentralised Physical Infrastructure Networks) applications, Solana’s breadth is a differentiator.

Key Catalysts & Prospects

• Protocol upgrades: The 2025 rollout of new scalability enhancements (e.g., “Firedancer” mainnet integration) promises further resilience and speed improvements.
• New institutional integrations: Market anticipation surrounds further exchanges listing SOL, alongside potential for Solana-focused ETF products in key markets—a scenario likely to attract new pools of capital.
• Expanding DeFi/NFT presence: Growth in decentralised trading, liquid staking, and next-gen NFT marketplaces should fuel continued on-chain activity.
• Favourable regulation: Ongoing advances in legal clarity for digital asset projects in both US and European contexts could accelerate institutional allocation into large-cap players like Solana.
• Novel use cases: Increasing adoption in real-world asset tokenisation, gaming, and social dApps reflects a shift beyond speculative trading to genuine Web3 utility.

Investment Strategies by Time Horizon

Short Term (1–6 months)

• Momentum capture: Technical structure favours tactical entries on pullbacks towards $130–$140, with upside potential to recent highs or new breakouts amid bullish sector rotation.
• Catalyst trading: Look for strategic positioning ahead of major protocol upgrades, hackathon-driven launches, or ecosystem incentive announcements.

Medium Term (6–24 months)

• Trend following: As Solana sustains leadership in Layer 1 throughput and capital attracts into DeFi/NFT niches, holding SOL through the next cycle wave could allow for participation as new TVL records and user milestones are achieved.
• Accumulative approach: Staggered entries or regular purchases during consolidation phases may enable ‘dollar cost averaging’ through the volatility, with an eye on periodic profit-taking at key resistance levels.

Long Term (2–5 years and beyond)

• Conviction holding: For investors seeking exposure to blockchain infrastructure and smart contract innovation, SOL merits consideration as a core allocation. Its growing integration into payment networks, developer expansion, and protocol-driven utility provide multiple secular growth angles.
• Strategic deployment: Participation can be timed around periods of broader risk-off sentiment when prices retest important support zones, or built up ahead of system-wide upgrades or major new product releases.

Solana Price Predictions (2025–2029)

Is Now the Time to Consider Solana?

Solana’s multifaceted strengths—ranging from explosive user growth and ecosystem breadth to technical outperformance and increasing institutional access—seemingly position it for outperformance within the Layer 1 landscape. The convergence of on-chain activity, rising developer allegiance, and innovation-led upgrades strengthens the fundamental case, while technical and liquidity metrics continue to validate renewed market interest.

• Key strengths driving this outlook:
• Market-leading speed and fee structure, enabling sustainable growth in user activity.
• Broadening adoption across DeFi, NFTs, gaming, and real-world asset sectors.
• Resilient technical structure, with strong on-chain and market signals.
• Deep liquidity and a major footprint on both retail and institutional platforms.
• Robust pipeline of core upgrades and integrations set to unlock further value.

Near-term and multi-year projections align towards a scenario where Solana could well embark on a sustained bullish phase, reflective of both its differentiated fundamentals and expanding market acceptance. For investors aiming to capture upside in the next wave of Web3 and blockchain utility, SOL appears to represent an excellent opportunity worthy of consideration. The coming quarters will test the extent of this momentum, but on current evidence, Solana holds an enviable position as a leading contender in crypto’s new growth frontier.

How to buy Solana?

It’s easy and secure to buy the cryptocurrency Solana (SOL) online in the UK using a regulated platform. Investors can choose between two main methods: direct spot purchase (owning actual coins in a wallet) or trading Solana via crypto CFDs (speculating on price movements without holding the coin). Each approach has its own advantages in terms of risk, fees, and flexibility. This guide explains both options so you can make an informed decision. For a detailed comparison of regulated platforms, see our comparison table further down the page.

Spot Purchase

Buying Solana on the spot market means you directly own the coins, which are stored in your exchange or personal crypto wallet. This method is suitable for investors looking for actual ownership. Typical fees are a fixed commission per transaction in GBP, ranging from 0.1% to 1% depending on the platform.

Example

Suppose Solana is priced at £110 per coin. If you invest £1,000, accounting for around £5 in transaction fees, you can buy approximately 9 SOL coins.
✔️ Gain scenario:
If the price of Solana rises by 10%, your portfolio is now worth £1,100.
Result: you’ve made a gross gain of £100, or +10% on your investment.

Trading via CFDs

Trading Solana through CFDs (Contracts for Difference) means you don’t own the actual coins. Instead, you take a position on their price moving up or down, often using leverage. Fees include the market spread and overnight financing if you hold your position longer than a day.

Example

You open a CFD position on Solana with a 5x leverage, using a £1,000 deposit. This gives you £5,000 exposure to SOL’s price movements.
✔️ Gain scenario:
If Solana’s price goes up by 8%, your position gains 8% × 5 = 40%.
Result: a gross profit of £400, on your initial £1,000 margin (excluding fees).

Final Advice

Before investing, it’s essential to compare the fees and specific terms of each platform to ensure you pick the option that best suits you. The best method hinges on your investment goals and experience: spot buying suits those seeking to hold actual coins, while CFDs allow active trading with leverage – but carry higher risk. Find our side-by-side platform comparison further down the page to help you choose securely and with confidence.

Our 7 tips for buying Solana

The latest news about Solana

Solana’s integration with UK-based neobank Revolut boosts accessibility for British crypto investors. Since 1 July 2024, Revolut has extended its crypto offerings to include direct Solana (SOL) trading and custody services for UK clients, adding advanced analytics and rapid settlement times. This positions Solana alongside major assets like Bitcoin and Ethereum on one of the UK’s most used fintech platforms, potentially expanding retail adoption and liquidity within the local market. According to Revolut’s UK crypto lead, user demand for high-throughput, cost-efficient assets prompted the inclusion, which may reinforce Solana’s relevance in British portfolios.

FTSE 250 financial services group Hargreaves Lansdown announced plans to list Solana ETPs for UK clients. Hargreaves Lansdown confirmed on 3 July 2024 the pending launch of Exchange Traded Products (ETP) tracking Solana’s price, providing a regulated avenue for UK investors to gain Solana exposure without navigating offshore exchanges. While the launch awaits FCA approval, executives indicated strong institutional and retail demand. The anticipated listing has been interpreted by local analysts as a milestone for broader acceptance of Solana in traditional British investment circles.

UK Treasury’s updated guidance affirms Solana’s status as a recognised token in forthcoming digital asset legislation. On 2 July 2024, the UK Treasury released updated draft guidelines for future digital asset regulation, explicitly referencing Solana among tokens with significant use cases and liquidity. This recognition could facilitate future institutional adoption, with compliance obligations clarifying Solana’s legitimacy for UK market participants. Several compliance and policy experts noted that official acknowledgement by the Treasury is a positive indicator for ongoing integration into the financial services ecosystem.

Solana’s NFT ecosystem gains traction with a London-based gallery launching curated digital exhibitions. In the past week, renowned digital art venue The Stage Gallery in London announced an exclusive partnership with leading Solana NFT projects for summer 2024, highlighting the increasing intersection of the Solana network with UK creative industries. This initiative is supported by local artists and collectors, driving both public engagement and institutional interest in Solana-powered NFTs within the British arts community, while also showcasing the chain’s low fees and network reliability for NFT minting.

Increased UK developer participation documented following Solana Foundation’s recent London hackathon. The Solana Foundation reported a 35% rise in engagement from UK-based developers after hosting a major hackathon in London on 29 June 2024, with several projects already receiving initial funding offers. British participants highlighted Solana’s technical scalability and access to grants as key draws. This uptick in developer activity is widely viewed as a positive signal for ecosystem growth and innovation, amid broader European interest in Solana’s technology stack.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.