Solana: Can a $2B corporate treasury boost SOL’s gains?
Realized profit has declined, suggesting that SOL could rebound amid relatively low selling pressure.
- Solana corporate treasuries intend to raise $2B for SOL buys.
- SOL’s short-term selling pressure has eased, and the price hit a pivotal point.
Solana [SOL] treasury companies may drive over $2 billion in capital into the asset, raising hopes of the altcoin’s extra rally in the mid to long term.
Notably, SOL Strategies and DeFi Development Corporation (DFDV) have each filed for a potential $1B capital raise.
According to Richard Galvin, founder of asset manager Digital Asset Capital Management, if effected, the overall SOL buying may rival Strategy’s BTC bid. He noted,
“To help put in perspective how material this could be, it’s the equivalent of Saylor buying $46bn of BTC…”
SOL treasury explodes
Like BTC, SOL corporate treasury has picked up momentum, with some analysts claiming it’s the hottest ‘meta’ in this cycle.
In fact, SOL Strategies has 395,0078 SOL stash with 3.5 million of total delegated SOL for their validator operations as of the 6th of May.
Meanwhile, DFDV has bought 609,233 SOL in two months. Another firm, Upexi, a U.S.-based brand and consumer-focused company, has increased its holdings to 679,677 SOL, acquired at $96.5 million.
If the trend continues and $2B flows into the asset, SOL’s value may appreciate. For perspective, SOL recovered from $100 to $173, marking a 72% gain.
Over the period, capital inflows into the asset, as tracked by realized cap, surged from $74.5B to $79.6B. That’s over $5B inflow.
Assuming everything remains constant and follows the Q2 recovery, $2B capital inflows could drive a +30% rally for SOL.
However, Solana co-founder Anatoly Yakovenko was worried about the SOL treasury companies’ model, especially in low-interest rate environments, tax obligations, or massive inflation.
That said, SOL price has cooled off slightly after massive profit-taking in mid-May that hit $737M, per Realized Profit indicator.
Historically, spikes in profit-taking (selling pressure) have marked local price peaks, as seen in November 2024 and January 2025.
But the indicator has declined at the end of May, suggesting that SOL may attempt to push higher amid relatively low selling pressure. But a negative Funding Rate (or low interest) may complicate matters.
On the price charts, however, SOL was at a pivotal point that could lead to a short-term rally or an extended correction.
Notably, the 12-hour RSI rested on the neutral level, and price action was above the key short-term moving averages (EMAs).
If the rally extends, a dip to $168 or $160 (two white levels) would be a great buying opportunity, eyeing the $180 target.
But a sustained drop below the 100-period EMA and 200-period EMA, would be a warning bearish signal.
