$61M in Shorts Liquidated in 24 hours as Solana Flips $BNB

Solana September is certainly living up to its name. Between the confirmation of TradFi’s first billion-dollar $SOL investment vehicle, approaching $SOL ETF approvals, and incoming cuts to interest rates, Solana is captivating crypto markets.

Onchain data indicates that Galaxy Digital may have begun purchases on behalf of Forward Industries, with the majority of the firm’s capital yet to be deployed.

Could rising $SOL prices create a new wealth effect and kickstart another season of onchain mania?

Solana Records New All-Time High Market Cap

Inspired by the prospect of a billion-dollar bid from recently-formed DATs, $SOL price has soared 14.58% in 7 days, securing a new all-time high market cap of $130B. Currently trading hands at $240, $SOL now sits a mere 22% move away from its all-time high price of $294, recorded during January 2025’s $TRUMP-inspired frenzy.

$SOL’s dramatic surge is believed to be largely driven by market participants trying to front-run incoming buys from the industry’s latest DATs, or Digital Asset Treasury companies. Following Forward Industries’ $1.65B raise confirmed earlier this week, onchain data suggests that one of the firm’s backers, Galaxy Digital, appears to have accumulated 1.81M $SOL.

Bulls were merciless in their push to a $240 $SOL, liquidating over $61M in short positions over the last 24 hours, flipping $BNB to become the world’s 5th largest cryptocurrency.

Network participants are optimistic that Galaxy Digital’s buys may just be the beginning of what could be a bullish Q4 for $SOL. Alongside the Forward Industries raise, another emerging DAT is expected to announce a $1B raise to fund $SOL accumulation.

These 10-figure DATs are likely trying to secure sizable holdings of $SOL ahead of Solana ETF approvals. Led by pro-crypto Chairman Paul Atkins, the SEC’s final deadline for $SOL ETF filings is set for October 16, giving firms like Forward Industries ample time to accumulate $SOL before the asset hits Wall Street. 

While Blackrock, the world’s largest asset manager, has not filed for a $SOL ETF, markets are still optimistic that Solana ETFs will witness strong inflows at launch. A recent SolanaFloor data report estimates that $SOL ETFs could expect to see ~$5.5B worth of inflows within their first years’ trading.

Assuaging any doubts, the REX-Shares Solana Staking ETF ($SSK) illustrates clear demand for exposure. $SSK has enjoyed consistent inflows since launching in July, and currently sits at an all-time high AUM of $250M.

Solana’s Onchain Metrics Explode

Against a backdrop of unbridled institutional demand, Solana’s DeFi TVL has hit a new all-time high, clearing over $13B for the first time in history. While the surge in USD value is largely driven by $SOL price appreciation, the network’s $SOL-denominated TVL sits a mere stone’s throw away from its own all-time highs recorded in 2022.

After ceding the lead to Jupiter following the launch of Jupiter Lend, Jito is within a whisker of reclaiming top spot in Solana DeFi’s TVL rankings.

Alongside rising TVL, Solana’s application revenue is dominating that of rival chains. According to DefiLlama, 30 day app revenue on the network is 129% and 94% higher than on Ethereum and Hyperliquid, respectively.

$PUMP Leads Ecosystem

With $SOL ripping to highs not seen since January, project tokens are enjoying the renewed sense of optimism and bullishness permeating the ecosystem. Buybacks and other forms of token holder revenue distribution are rapidly becoming the status quo, as evidenced by the impressive performance of certain assets.

$PUMP, the native token of revenue powerhouse pump.fun, is the most distinct example. Allocating 100% of protocol revenue to token buybacks, $PUMP has soared over 120% over the past 2 weeks as the platform pours millions into the market everyday to support $PUMP price.

Since buybacks began, pump.fun has purchased over $88.3M worth of $PUMP tokens, offsetting around 6.32% of the circulating supply.

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