In mid-2025, Solana (SOL) is capturing significant institutional interest, with public companies holding roughly 5.9 million SOL, equivalent to 1% of its circulating supply, in corporate treasuries. This trend reflects confidence in Solana’s high-performance blockchain, known for its scalability and low-cost transactions. However, challenges like regulatory uncertainty and concentrated holdings raise questions about sustainability. In this Phemex blog, we will explore the drivers, risks, and potential impacts of Solana’s treasury adoption, offering insights for investors navigating the 2025 crypto landscape.
Why Institutions Are Betting on Solana Treasuries
Solana’s unique features drive institutional adoption. DeFi Development Corp., a Nasdaq-listed firm, holds 1.18 million SOL valued at $199 million, acquired at $166.61 per token on August 1, 2025. By staking these tokens across validators, the company earns 7–8% annual yields, making Solana a productive asset compared to passive holdings like Bitcoin. Key attractions include:
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High Throughput: Solana processes 65,000 transactions per second (TPS), far surpassing Ethereum’s 15 TPS.
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Low Fees: Sub-penny transaction costs support scalable applications.
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Yield Potential: Staking offers 7–8% returns, appealing to yield-focused investors, per Cointelegraph.
Major Players Building Solana Treasuries
Several firms are making strategic moves to amass Solana treasuries, reflecting long-term confidence:
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Upexi Inc.: Holds 2 million SOL worth $320 million, funded through $200 million in equity raises and convertible notes, making it the largest known corporate SOL holder.
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Sharps Technology: Announced a $400 million private placement on August 25, 2025, to build a major Solana treasury, backed by a $50 million SOL commitment from the Solana Foundation at a 15% discount.
These investments leverage Solana’s scalability for applications like decentralized finance (DeFi) and tokenized real-world assets (RWAs), per Webopedia.
Solana ETFs: A Catalyst for Institutional Capital
Exchange-traded funds (ETFs) are strengthening Solana’s institutional momentum. On August 1, 2025, Franklin Templeton and Grayscale amended their Solana ETF filings with the SEC to include staking provisions, targeting up to 7.3% yields. Key considerations include:
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Approval Prospects: Analysts estimate a 90% chance of SEC approval by year-end, potentially unlocking significant capital inflows.
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Market Response: A 2.95% SOL price drop to $172.42 on July 31, 2025, reflects caution about regulatory timelines.
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Benchmark: Bitcoin ETFs saw $150 million in inflows on August 26, 2025, suggesting a similar path for Solana if approved, per CoinDesk.
Alpenglow Consensus Upgrade
Solana’s Alpenglow consensus upgrade, highlighted at the Solana Crossroads 2025 conference, enhances its institutional appeal. The upgrade streamlines validator operations to improve network efficiency. Key improvements include:
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Cost Reduction: Lower capital requirements for validators encourage broader participation.
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Network Security: Over 1 million SOL staked by corporations ensures no single entity dominates, preserving decentralization.
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DeFi Ecosystem: $11 billion in TVL across platforms like Raydium supports institutional use cases like RWAs, per CryptoMeshNews.
Regulatory Support and Global Expansion
Regulatory progress strengthens Solana’s credibility for institutions. Hong Kong’s 2025 retail crypto trading framework has expanded Solana’s presence in Asia, with exchanges integrating SOL for payments. Additional factors include:
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Accounting Clarity: The Financial Accounting Standards Board’s January 2025 ruling allows fair value accounting for digital assets, simplifying corporate adoption.
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Strategic Partnerships: Collaborations with firms like R3, which tokenized $10 billion in RWAs on Solana, enhance institutional trust.
These developments create a supportive environment for treasury adoption, per SmartLiquidity.
Risks to Institutional Adoption
Solana’s institutional push faces several challenges that investors must consider:
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Liquidity Risks: Concentrated holdings of 5.9 million SOL could trigger price swings if large players sell during downturns.
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Regulatory Uncertainty: SEC delays on Solana ETF approvals, extended to October 2025, create hesitation among investors.
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Security Concerns: While Solana boasts 15 months of uptime, broader blockchain vulnerabilities, like a $1.5 billion Ethereum hack in 2024, highlight risks.
Comparing Solana to Bitcoin and Ethereum
Solana’s treasury adoption invites comparisons to other blockchains:
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Bitcoin: Holds $3,970 million in corporate treasuries (e.g., Twenty One Capital) but lacks staking yields, prioritizing stability over productivity.
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Ethereum: Holds $6,600 million in corporate treasuries (2.7 million ETH at $2,400/ETH, 19 companies) with 3–5% staking yields but slower 15 TPS.
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Solana: Holds $765 million in corporate treasuries (5.9 million SOL, five companies) with up to 7.3% staking yields and 65,000 TPS but higher volatility due to its newer ecosystem, per CoinGecko.
Institutional Strategies and Market Implications
Corporate treasuries are adopting varied strategies with Solana:
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Yield Generation: Firms like DeFi Development stake SOL for passive income, rivaling traditional fixed-income assets.
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Operational Integration: Companies like Sharps Technology explore supply-chain tokenization, embedding Solana in business models.
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Long-Term Investment: Large holdings signal confidence in Solana’s ecosystem growth.
However, concentrated holdings raise concerns about potential market manipulation during sell-offs, requiring careful risk management.
What You Can Do in Phemex to Navigate the Solana Trend
Phemex equips investors to capitalize on Solana’s institutional momentum with user-friendly, secure tools tailored for retail and institutional traders:
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Trade SOL Seamlessly: Access SOL trading pairs on Phemex’s spot market with 0.1% maker/taker fees, enabling cost-effective trades to align with institutional trends.
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Amplify with Futures: Trade SOL perpetual futures with up to 100x leverage, using stop-losses and scaled orders to manage risk and capitalize on market movements.
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Earn Steady Yields: Stake SOL on Phemex to earn up to 4% annual yields, offering passive income to complement institutional treasury strategies.
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Leverage Real-Time Insights: Monitor Solana’s market cap with Phemex’s interactive charts and analytics for informed trading decisions.
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Prioritize Security: Store SOL in Phemex’s 100% cold wallet system, backed by Merkle-Tree Proof-of-Reserves, ensuring asset safety amid blockchain risks.
These tools make Phemex a trusted platform to trade, stake, and analyze SOL, empowering users to engage with Solana’s institutional wave efficiently.
Outlook for 2025
Solana’s institutional treasury adoption, with $765 million held by public companies, positions it as a strong contender in 2025. Corporate investments, ETF prospects, and the Alpenglow upgrade drive its appeal, but regulatory delays, liquidity risks, and volatility demand caution. Investors can leverage Phemex’s trading and staking tools to navigate this dynamic landscape effectively.
Ready to explore Solana’s institutional momentum? Trade SOL on Phemex’s secure platform or stake your tokens for competitive yields. Stay informed to balance opportunities and risks in 2025’s crypto landscape.
