Solana (SOL) has been making headlines with its growing institutional interest, despite facing short-term price struggles and diminished retail interest. In recent developments, companies like SOL Strategies and Galaxy Digital have demonstrated confidence in Solana’s long-term prospects, continuing to accumulate SOL tokens and further solidifying their commitment to the ecosystem.

Institutional Accumulation Continues

On March 7, 2025, Canadian-based firm SOL Strategies made a notable purchase of 24,000 SOL tokens, valued at $3.3 million. This purchase marks a continued effort by SOL Strategies to expand its holdings, with the company now possessing a total of 250,700 SOL. SOL Strategies is a pioneer in corporate treasury services using Solana, and its recent acquisition aims to support the firm’s validator operations and long-term investment strategy. The company has stated that it plans to buy more SOL during any “market meltdown,” signaling strong belief in Solana’s future potential.

However, despite these strategic purchases, SOL Strategies has seen significant losses due to Solana’s price struggles. The firm’s stock, CYFRF, dropped by 51% from $4.2 to $2, although it has posted impressive gains since the 2024 U.S. elections, with a 156% increase. This illustrates that, even in the face of short-term losses, institutional players are positioning themselves for the long haul, suggesting optimism about Solana’s broader future.

Galaxy Digital’s Large Stake in Solana

In another positive sign for Solana’s institutional backing, Galaxy Digital, a leading cryptocurrency investment firm, also made a significant move in March 2025. The firm withdrew 282,500 SOL, worth about $40.5 million, from centralized exchanges and staked 274,253 SOL tokens, valued at $39.15 million.

Staking is generally seen as a bullish indicator, as it reflects a long-term commitment to the blockchain network and a belief in the asset’s future value. Galaxy Digital’s stake in Solana highlights continued confidence from large players, even though Solana’s price has been fluctuating in recent weeks. This trend of institutional confidence is crucial, as it underscores the belief that Solana’s technology and ecosystem have long-term potential despite current market volatility.

Retail Interest Struggles Amid Volatility

Despite the positive institutional moves, Solana’s retail market performance has been less than stellar. Retail interest in SOL has notably declined since the debut of the TRUMP coin in mid-January 2025. Alongside this, weak sentiment followed the collapse of the LIBRA coin, further suppressing retail engagement.

Recent news, such as the declaration of CME Futures for Solana on March 1, briefly fueled positive sentiment and small price upticks. However, the momentum did not last, and retail interest has since remained subdued. This lack of sustained enthusiasm from smaller investors has created a significant gap between institutional support and retail participation, with many market participants uncertain about Solana’s near-term future.

Price Predictions and Support Levels

Despite the institutional backing, Solana’s short-term outlook remains uncertain. On platforms like Polymarket, more bettors expect SOL’s price to drop to $130 by the end of March. Meanwhile, options traders on Deribit are cautiously optimistic, pricing a 10% chance of SOL reaching $200 by the end of the month. The $120 price zone has also held strong as a critical support level since early 2024, and bulls may attempt to defend it in the event of further downside risks.

While the current market dynamics paint a mixed picture, the ongoing institutional interest in Solana suggests that its long-term potential remains intact. As more firms like SOL Strategies and Galaxy Digital continue to accumulate SOL, it’s likely that Solana will see further development and adoption within the crypto space, potentially setting the stage for a recovery and breakout in the future. However, much will depend on broader market conditions, retail sentiment, and Solana’s ability to maintain its institutional backing in the face of volatility.