Solana climbed roughly 46% in August, snapping ten straight months of declines, as institutional buying, a supply-tightening governance vote, and record network activity pushed the token back above $100. Traders now watch whether September's scheduled upgrades can extend the rebound.
Solana (SOL) traded near $106 on Sunday afternoon, capping its strongest month since 2024 after climbing roughly 46% in August. The token touched $110.38 on Aug. 27, its highest level since late January.
The gain snapped ten consecutive monthly declines and left the token about 80% higher than its June low, pushing its market valuation back toward the $61 billion zone. SOL still trades far below its January 2025 all-time high near $293, and would need to climb another 63.5% from here to reach it.
Institutional money builds a floor
Regulated products supplied a visible bid. U.S. spot solana ETFs have collected roughly $1.34 billion in cumulative net inflows since launching in October 2025, according to sosovalue.com.
Bitwise's BSOL staking fund has cleared $1 billion in assets under management. Charles Schwab, which oversees more than $12 trillion in client assets across roughly 39 million brokerage accounts, announced Aug. 27 plans to add spot SOL, avalanche, and chainlink to Schwab Crypto in the coming months.
Defi Development Corp. purchased 19,000 SOL at an average price of $98.14, lifting its holdings to about 2.33 million SOL. Goldman Sachs disclosed roughly $88 million in Solana ETF exposure in its latest regulatory filing.
A governance vote tightens future supply
Solana also completed its first binding onchain governance vote. SGP-0002, dubbed "Double Disinflation," passed with 67% support, barely clearing the required two-thirds threshold.
The change doubles Solana's annual disinflation rate from 15% to 30%, so new SOL will enter circulation at a much slower pace sooner, while the network keeps its eventual 1.5% inflation floor. Estimates place the issuance reduction at roughly 18.9 million SOL over six years, though developers still must finish the software work and activate the policy across the network.
Record traffic and a leveraged breakout
The rally also arrived with heavy network usage. Solana processed a record 4.2 billion transactions in July, 13.5% above June and roughly 91% higher than December 2025, according to the Kobeissi Letter. From Aug. 17-23, the network logged about 1.32 billion non-vote transactions, setting another weekly record.
Leverage amplified the move too: more than $16 million in solana short positions were liquidated during the breakout toward $109, according to Coinglass.com. September brings the harder test, with the first rent reduction, Transaction V1 landing Sept. 9, and progress toward the planned Alpenglow consensus upgrade in October set to show whether August's rebound has staying power.
Source: Bitcoin News
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