Can Solana break through $500? The market shift brought by institutional recognition

What Does the Shift in Institutional Big Players’ Attitudes Mean

The landscape of the crypto market is undergoing subtle changes. The era when Bitcoin alone dominated institutional portfolios is over, and 2025 has become a pivotal period for altcoins to emerge. Among them, Solana’s performance stands out.

In the fourth quarter, $622 million in spot SOL ETF funds poured in, breaking the market’s traditional perception of altcoins. Bitwise’s BSOL ETF absorbed nearly 95% of the inflow, becoming a major player in the Solana ecosystem. This is not just about numerical growth but a fundamental change in the mindset of institutional investors.

A more symbolic move is Vanguard’s action. This investment giant, managing $11 trillion in assets, has long been reserved about cryptocurrency ETFs. On December 2, Vanguard made a strategic adjustment, officially including cryptocurrency ETFs in its investment scope, with Solana prominently listed. This decision signifies far more than mere asset allocation—it represents a formal recognition of the altcoin market by traditional financial institutions.

Technical Strength Supporting Long-Term Investment

Solana’s appeal is not just wishful thinking. Although it has declined nearly 28% this year, still far from the 95% plunge in 2022, its underlying technical capabilities have remained competitive.

According to Chainspect data, Solana’s transaction speed has increased by 4.78%, currently stable at approximately 798.5 transactions per second, with final confirmation taking only 12.8 seconds. Such performance makes Solana one of the fastest public blockchains globally. While Bitcoin and Ethereum are still exploring scalability issues, Solana has already broken through this bottleneck.

The Alpenglow upgrade plan is scheduled to launch in early 2026, further optimizing speed and efficiency. From a technical perspective, the investment decisions of institutions like Vanguard have just seized the window of Solana’s performance iteration.

Market Consensus and Price Outlook

The reputation of Solana as the “Ethereum killer” is not just hype but based on its actual advantages in scalability and ecosystem adoption. Although Ethereum still maintains dominance, the competitive landscape of altcoins is reshaping.

The influx of institutional capital combined with expectations of technological upgrades provides a more solid foundation for the idea that Solana’s price could rise from the current $140 to $500. This implies a roughly 257% increase—while substantial, it is not entirely impossible under the dual drivers of institutional deployment cycles and technological progress.

The key at this stage is that Vanguard’s move indicates institutional investors have changed their attitude toward altcoins, which will become an important force driving the long-term development of the Solana ecosystem. This market shift, driven jointly by traditional finance and crypto innovation, has only just begun.

SOL current price $140.00, 24-hour change +2.15%.