Here's Why You Should Buy Solana Even After It Went Up 41% in 1 Year

In crypto, strength often begets more strength. Waiting forever for the perfect dip to buy can be more expensive than paying up for the asset that keeps earning new reasons for capital to flow in. If the reasons persist or multiply, yesterday's price ends up looking quaint.

And that's why Solana (CRYPTO: SOL) still deserves a look after climbing roughly 41% during the past 12 months. In the coming quarters, three powerful demand drivers are converging, and so the story is not over just because the chart is up. Let's jump in and see why it's still worth buying.

Image source: Getty Images.

The next wave of demand is already queuing up

The simplest near-term catalyst is the approval of a Solana exchange-traded fund (ETF), which is very likely to occur in mid-October.

Given the high odds of approval, the main debate is focused less on "if" and more on how big the first-year flows will be. Some estimates for the potential first-year inflows, like from JPMorgan, call for about $1.5 billion even under cautious assumptions, which is additive to existing demand rather than replacing it. For an asset with a market cap of $110 billion, that could be a meaningful sum.

ETF approvals tend to follow the path of futures market development. On that score, the CME Group's intent to list Solana futures earlier this year was a meaningful breadcrumb, because regulators at the Securities and Exchange Commission (SEC) have historically preferred to see price discovery migrate onto supervised venues before green-lighting spot ETF products.

Policy is the second tailwind. In early March, the White House issued an executive order calling for the formation of a Strategic Bitcoin Reserve (SBR) and a U.S. Digital Asset Stockpile (DAS) to hold other digital holdings. The order did not list specific altcoin assets, but the framework is now on paper. If implemented, it would formalize government stewardship and could, over time, limit the number of coins available for public trading.

Real usage by large financial brands is the third tailwind, and it's a big one. Asset manager Franklin Templeton expanded its tokenized U.S. government money market fund to Solana this year, showing that the chain's rapid speed and low-cost profile are winning institutional experiments in tokenization. That's sure to drive stronger capital inflows than would occur otherwise.

How to invest in it wisely

No investment thesis is bulletproof, and Solana has a few caveats that deserve respect.

First, ETF inflows might be modest relative to expectations, especially if investor attention is fragmented across multi-asset crypto funds -- an outcome that's plausible, given how many new crypto ETFs are up for approval at the moment. If so, the initial pop could underwhelm before the structural bid asserts itself over time. That would match the initial launch of the Ethereum ETFs, which didn't get much in the way of capital inflows during their first year on the market, but which later went on to attract billions of dollars in capital.

Second, regulatory pacing can stretch timelines, and the SEC has been willing to defer its decisions on crypto ETFs numerous times already, as well as require asset issuers to refile applications for various reasons. Amended filings are in progress, but the SEC is in no rush. Assuming that approvals arrive within months, as is widely expected, the more important point is that ETF plumbing tends to compound demand as retirement accounts and fee-sensitive platforms switch on access gradually rather than all at once.

Third, networks grow in cycles. Activity surges can stress transaction processing, whereas quieter stretches can cool narratives. Investors should acknowledge that cyclicality, as it can be uncomfortable to hold through.

So, what's the best way to hold Solana?

The idea is to let the structural drivers work for you rather than trying to outmaneuver volatility. Dollar-cost averaging over several months is a disciplined way to build exposure ahead of potential ETF launches and any policy follow-through from the Digital Asset Stockpile framework. If the approvals slip, you are still accumulating a network with rising institutional acceptance and a cost profile that invites usage. If approvals land sooner, you are already in position.

As a final calibration, remember that valuations can stretch. There will be pullbacks. But if ETFs unlock fresh channels of demand, if policy tailwinds remove lingering risks for financial institutions, and if tokenization leaders keep choosing Solana for speed and cost, the supply of coins will tighten against a growing buyer base. And that's exactly the setup where paying up a bit today can still age well.

Alex Carchidi has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool recommends CME Group. The Motley Fool has a disclosure policy.