Solana (SOL) has proven to be one of the most resilient crypto assets. SOL faced a massive price…

Solana (SOL) has proven to be one of the most resilient crypto assets. SOL faced a massive price dip after the collapse of FTX in 2022. The cryptocurrency’s price fell to below $9 at its lowest point after the exchange’s collapse. Since its 2022 lows, SOL has made quite a remarkable recovery. The asset has hit multiple all-time highs, the latest being $293.31 on Jan. 19 of this year.

3 Things That Can Take Solana’s Price to $500

1. Spot Solana ETF

There are currently seven spot SOL ETF applications with the SEC awaiting approval. According to Bloomberg ETF analyst James Seyffart, there is a 90% chance that the SEC will approve a SOL ETF this year. The financial watchdog has acknowledged the 19b-4 form. The SEC also most likely views SOL as a commodity. The chances for more crypto-based ETFs increased in 2025 after the appointment of pro-crypto candidate Paul Atkins as the new SEC head.

An ETF launch will likely lead to a surge in institutional investments for Solana (SOL). Bitcoin (BTC) has hit multiple peaks after the SEC approved 11 spot BTC ETFs last year. We may see a similar pattern for SOL. Institutional inflows are a key driver for an asset’s price. Institutional money may also bring more stability to SOL’s price.

Also Read: Solana: What’s SOL’s Price If Its Market Cap Hits $1 Trillion

An ETF approval could also lead to a surge in investor confidence. Retail players may also increase their SOL exposure. If investor confidence increases, SOL could witness incredible growth. Such a scenario could propel SOL’s price beyond the $500 mark.

2. Firedancer Upgrade

The firedancer upgrade aims to substantially increase scalability on the Solana network. The update will increase transactions per second on the SOL network to more than one million. To give you some perspective, the Ethereum network can handle about 15 transactions per second. If the SOL network can successfully handle more than one million transactions per second, it could become the global standard for crypto transfers.

The Firedancer update also aims to reduce transaction fees. A dip in fees and an increase in scalability could lead to a massive adoption phase for SOL. Such a development may lead to a significant price rally for the asset. SOL could easily breach the $500 mark under such conditions.

SOL may experience a surge in demand for cross-border remittance purposes. The SOL network could become an alternative to fiat currency transfer systems, like SWIFT.

3. Global Crypto Adoption And Market Conditions

The cryptocurrency market is expected to grow at an unprecedented pace over the coming years. Binance founder Changpeng Zhao (CZ) believes Bitcoin (BTC) will go somewhere between $500,000 and $1 million this cycle. CZ is not the only person who believes BTC will hit $1 million soon. Ark Invest CEO Cathie Wood also believes BTC will eventually hit the $1 million mark. Several analysts anticipate BTC to hit never-before-seen levels by the end of this decade. Solana (SOL) and other cryptocurrencies will greatly benefit from BTC hitting $1 million.

The crypto sector has also experienced substantial adoption over the last few years. This adoption curve is expected to only increase over the coming years. More and more investors are exposing themselves to cryptocurrencies. SOL may play a significant role in the growing adoration for crypto globally.

Also Read: Solana To Set Up Economic Zone In Dubai: MOU Signed

The US now has a pro-crypto administration. Many anticipate lenient regulations under President Trump’s leadership. We may see more crypto-based initiatives in the US over the coming years. The environment could set the stage for Solana (SOL) to hit the $500 mark very soon.