Although the “altcoin season” has not officially begun, Solana (SOL) is witnessing growing interest from institutional investors

Although the “altcoin season” has not officially begun, Solana (SOL) is witnessing growing interest from institutional investors, with significant

Despite "altcoin season" not officially kicking off yet, data shows that institutional investors are increasingly interested in Solana (SOL), especially in May 2025, with several institutions making significant moves to accumulate the altcoin.

As DeepMind engineers reportedly left Google to join Solana, an analysis from X account ‘OnchainLens’ revealed that a whale recently increased its SOL holdings by 17,226, investing $1 million in FARTCOIN and $300,000 in LAUNCHCOIN. Another whale withdrew 296,000 SOL from FalconX and staked it, showcasing an intent for long-term commitment to the Solana ecosystem.

Further analysis from OnchainLens revealed that DeFi Development Corp has been accumulating Solana, adding over 170,000 SOL to its holdings, pushing the total value above $100 million. Similarly, SOL Strategies has been investing in Solana, with an addition of over 122,524 SOL to its investment portfolio in May.

These moves highlight the confidence that some institutional investors have in Solana's potential for future growth.

Moreover, according to the latest data from Glassnode, 65% of SOL’s total supply is currently staked, which can be seen as a positive sign, highlighting the community’s confidence in Solana’s stability and long-term potential.

As BeInCrypto previously reported, Solana achieved a total app revenue of $1.2 billion in Q1 2025. This result marks a 20% growth compared to the previous quarter ($970.5 million). It is the highest-performing quarter for Solana in the past 12 months, demonstrating a strong ecosystem recovery after a year of significant volatility.

Additionally, Glassnode data shows that the real capital inflow into SOL over the past 30 days has returned to positive territory, growing at a rate on par with XRP. These signals indicate that on-chain demand for Solana shows signs of recovery, even though the broader altcoin market has yet to take off fully.

Another noteworthy analysis from the X account jon_charb suggests that SOL’s ATH price at the start of 2025 bears striking similarities to Ethereum in 2021. Specifically, SOL experienced a significant price surge earlier this year, much like Ethereum's breakout before the 2021 altcoin season.

If history repeats itself, Solana may be in an accumulation phase ahead of a new growth cycle, especially as institutional investors continue to pour capital into its ecosystem. This parallel reinforces confidence in SOL’s potential and highlights the possibility that this blockchain could lead the upcoming altcoin season.

However, it’s worth noting that the altcoin market is still in the early stages of recovery. Spot trading volumes, which are lower than previous highs, indicate that market sentiment remains cautious.

Nevertheless, the accumulation moves by institutional investors and the development of Solana’s ecosystem suggest that SOL may be gearing up for a significant leap when market conditions become more favorable.