On Sunday afternoon, the token was trading around $106 after reaching a mark of $110.38 on August 27th—its highest level since late January. This month, $SOL has risen by approximately 46% and is about 80% above its June low, bringing the project's market capitalization close to the $61 billion mark again.
Wall Street Money Begins Flowing Into Solana
This rise ended a ten-month streak of consecutive declines and marked Solana's most successful month since 2024. However, $SOL remains significantly below its all-time high ($ATH) from January 2025, which was near $293, making August more a period of recovery than a market price discovery phase. To reach the $ATH, $SOL needs to rise another 63.5% from its current level.
One thing is certain: regulated investment products have provided noticeable demand. According to statistics from sosovalue.com, U.S. exchange-traded funds (ETFs) trading Solana on the spot market have attracted a cumulative net inflow of approximately $1.34 billion since their launch in October 2025. The Bitwise BSOL Fund on Solana, which is also a staking ETF, surpassed the $1 billion mark in assets under management.
Another major distribution channel is emerging. On August 27, Charles Schwab announced plans to add spot tokens $SOL, Avalanche (AVAX), and Chainlink (LINK) to the Schwab Crypto platform in the coming months. Schwab manages over $12 trillion in client assets across approximately 39 million brokerage accounts.
Corporate buyers are also joining this process. Defi Development Corp. purchased 19,000 $SOL at an average price of $98.14, increasing its holdings to approximately 2.33 million $SOL. Goldman Sachs also disclosed in its latest regulatory filing investments in Solana ETFs worth approximately $88 million.
Solana Governance Vote Limits Future Supply
Meanwhile, Solana completed its first mandatory on-chain governance vote. Proposal SGP-0002, named "Double Disinflation," was approved with support from 67% of participating stakeholders, barely surpassing the required two-thirds threshold.
This change doubles Solana's annual disinflation rate from 15% to 30%. Simply put, new $SOL will enter circulation at a much slower pace, while the network retains its final minimum inflation rate of 1.5%. It is estimated that the emission reduction will amount to approximately 18.9 million $SOL over six years.
Nothing changes overnight. Developers still need to finalize the software and activate this policy across the network, so implementation becomes the next important milestone for traders tracking Solana's future supply.
Record Traffic Puts Solana to the Test
The rally was accompanied by intense network strain. The Kobeissi Letter reported on August 25 that in July, Solana processed a record 4.2 billion transactions, a 13.5% increase from June and approximately 91% higher than in December 2025. From August 17 to 23, about 1.32 billion non-vote transactions were recorded, setting another weekly record.
Increased throughput is already planned. The Transaction V1 upgrade, scheduled for September 9, will increase the maximum transaction size from 1,232 bytes to 4,096 bytes, giving applications significantly more room to pack data into individual transactions.
Data storage is also becoming cheaper. The planned reduction in Solana's rent will ultimately cut the deposit required for on-chain data storage by 90%, lowering costs for developers creating token accounts, non-fungible tokens, and tokenized real-world assets.
September Will Determine How Sustainable $SOL's Growth Is
At the same time, leverage essentially fueled the August rally: According to Coinglass.com derivatives statistics, over $16 million in short positions on Solana were liquidated during the breakout to $109. Forced buying can quickly extend a rally, but this mechanism works just as aggressively when momentum reverses.
September will be a more serious test. $SOL traders will be watching for the first fee reduction—the Transaction V1 upgrade on September 9th, reduced transaction times, and progress toward the planned Alpenglow consensus update in October. These milestones will show whether August's rally marks the beginning of something bigger or simply resulted in Solana's sharpest recovery in almost a year.
Featured image courtesy of sosovalue.com.
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