Solana [SOL] may be a great pick for a potential windfall despite shedding over half of its value.
Like most altcoins, Solana has been consolidating tightly within the $72-$94 price range over the past few weeks. Although the altcoin has beaten Ethereum in investor returns since the February lows, it is still down 65% from its October 2025 high of $253.
In fact, when tracked from the 2024 peak of $295, SOL was down 70%. But Grayscale sees a massive opportunity for the altcoin, key bullish catalysts beginning to align for long-term holders.
SOL’s bullish catalysts
For digital asset manager Grayscale, the over 65% drawdown is an ‘attractive entry point’ for long-term SOL investors seeking relatively higher risk-adjusted returns.
According to Zach Pandl, Grayscale’s head of research, key catalysts for the asset included strong fundamentals, stablecoin growth, and a diverse on-chain economy.
In 2025, Solana led in generated fees, user activity, and transactions, underscoring robust fundamentals that could lift its price if broader market sentiment improves.
Similarly, its lower fees and faster transfers have led to Solana stablecoin settlements reaching $650 billion in February, outpacing Ethereum and Tron. Apart from being a key payment player, it has also carved out a strong market share in tokenized stocks.
In fact, estimates suggest Solana payments could grow 10x over the next three years.
Additionally, RWA data showed that the tokenized stock market hit $1 billion, and Solana is the second largest home to this segment. Ethereum leads the sector, handling $392 million of the market, translating to 39% dominance. Solana ranked second with $275 million in market share, or 27%.
Collectively, with the projected stablecoin and tokenization boom, Solana could handle more of these activities.
Beyond these two hot narratives, Solana’s DeFi and DePIN (decentralized physical infrastructure) are also thriving. Collectively, these could boost SOL’s value if the rising settlement activity triggers demand for the altcoin.
Is a breakout feasible?
Meanwhile, SOL is already building price momentum despite weeks spent stuck in the $78-$94 range. Notably, recent whale accumulation briefly lifted it above $90.
Now, the monthly holders’ accumulation has hit a new high of 1.15 million SOL in March, as illustrated by the Holder Net Position Change metric. The metric tracks demand from holders, and strong accumulation, marked by green bars, has a strong correlation with past SOL rallies.
In contrast, red bars mark hodlers’ sell-off and are typically associated with SOL’s price decline or range trading. As such, if the accumulation spree persists, SOL may front a breakout.
Final Summary
- Grayscale viewed SOL’s drawdown as an ‘attractive entry point,’ citing key bullish catalysts for the altcoin in the mid-term.
- Holders scaled an accumulation spree to a new high of 1.15 million SOL tokens in March
