Solana (SOL) price has recently shown signs of a possible further correction after facing rejection above the $160 mark earlier this week. This large-cap altcoin, driven by the mainstream adoption of memecoins and real-world assets tokenization (RWA), experienced a decline of over 5 percent in the last 24 hours. As of Tuesday, July 1, 2025, during the mid-North American trading session, SOL was trading at around $146.55.
Institutional Demand Spells Hope for Solana
The demand for Solana has seen substantial growth over the past year, primarily fueled by institutional investors. The recent approval by the U.S. SEC of the first Solana ETF product has further boosted confidence in the market. Following Grayscale’s successful conversion of its Grayscale Digital Large Cap (GDLC) Fund into a spot ETF, there is optimism surrounding the approval of additional spot SOL ETF applications.
In response to the increasing organic demand for Solana, DeFi Development Corp. (NASDAQ: DFDV) has announced plans to increase its SOL holdings. The company revealed its intention to raise $100 million through convertible senior notes due in 2030. A portion of the proceeds from the offering will be used for share repurchases and general corporate purposes, including the acquisition of SOL.
What’s Next for SOL Price?
Similar to other altcoins, SOL price has closely followed the price action of Bitcoin (BTC) in recent times. On the daily timeframe, Solana price faced rejection from the 50 Moving Average Simple (SMA), indicating a loss of initial recovery momentum by the bulls. However, the growing interest in SOL from institutional investors, coupled with improving regulatory clarity in the crypto space, suggests the potential for a bullish recovery later this year.
As investors continue to monitor the price movements of Solana and other cryptocurrencies, institutional demand remains a key factor to watch. With ongoing developments in the market and regulatory environment, SOL’s future performance will likely be influenced by a combination of technical factors and broader market trends.
Overall, while short-term price corrections are not uncommon in the cryptocurrency market, the long-term outlook for Solana appears positive, supported by increasing institutional interest and potential growth opportunities in the decentralized finance sector.