Although the "altcoin season" has not officially begun, Solana (SOL) is attracting increasing attention from institutional investors, with significant accumulation movements noted in May 2025.
Recent reports and analyses show that Solana is attracting capital from institutions and experiencing an increase in new developer activity, along with positive signals from on-chain data.
Altcoin season has not arrived, but SOL attracts institutional attention
Data shows that the spot trading volume of altcoins remains lower compared to levels seen in January 2025 and 2024. Naturally, it is still far from the peak of 2021. This indicates that the altcoin market as a whole has not yet achieved the necessary momentum to launch a strong growth cycle.
"We still have a long way to go before seeing the same level of interest in altcoins as seen in previous rallies," shared Nic Puckrin, co-founder of Coin Bureau.
Spot trading volume of Bitcoin and altcoins. Source: Nic Puckrin on XHowever, despite this context, Solana (SOL) is emerging as a bright spot, attracting the attention of institutional investors.
Specifically, some institutions have increased their SOL holdings before the altcoin season. According to OnchainLens, a whale recently increased holdings by 17,226 SOL while investing 1 million USD in FARTCOIN and 300,000 USD in LAUNCHCOIN.
Another whale withdrew 296,000 SOL from FalconX and staking, showing accumulation trends and long-term commitment to the Solana ecosystem.
Moreover, DeFi Development Corp recently increased Solana holdings by over 170,000 SOL, pushing the total value above 100 million USD. Similarly, SOL Strategies added over 122,524 SOL to its investment portfolio in May.
These moves reflect strong confidence from institutional investors in Solana's future growth potential.
Solana ecosystem develops strongly
Not only attracting institutional investor interest, Solana is also receiving positive signals from its ecosystem. The fact that 65% of SOL's total supply is currently being staked is a positive sign, reflecting the community's trust in Solana's stability and long-term potential.
SOL Staking. Source: StakingRewardsAs previously reported by BeInCrypto, Solana achieved total application revenue of 1.2 billion USD in Q1 2025. This result marks a 20% increase compared to the previous quarter (970.5 million USD). This was Solana's highest-performing quarter in 12 months, showing a strong recovery of the ecosystem after a significantly volatile year.
Additionally, data from glassnode shows that the real capital flow into SOL in the past 30 days has returned to a positive zone, growing at a rate comparable to XRP. These signals indicate that on-chain demand for Solana is showing signs of recovery, although the broader altcoin market has not yet truly exploded.
SOL shows signs of trend reversal after several months of declining real capital flow. Source: GlassnodeSolana reflects Ethereum's 2021 performance
Another notable analysis from the X account jon_charb shows that SOL's ATH at the beginning of 2025 has striking similarities with Ethereum in 2021. Specifically, SOL experienced a significant price increase early this year, similar to Ethereum's explosion before the altcoin season in 2021.
If history repeats itself, Solana may be in an accumulation phase before a new growth cycle, especially as institutional investors continue to pour capital into its ecosystem. This reinforces confidence in SOL's potential and emphasizes the possibility that this blockchain could lead the upcoming altcoin season.
However, it is important to note that the altcoin market is still in the early stages of recovery. Spot trading volume, lower than previous peaks, indicates that market sentiment remains cautious.
Nevertheless, the accumulation moves by institutional investors and the development of the Solana ecosystem suggest that SOL may be preparing for a significant leap when market conditions become more favorable.
