To enhance scalability, Solaxy, the first Layer-2 chain for Solana, aims to process transactions off-chain, which could help manage increased traffic during peak demand.

Solana has recently surpassed Ethereum in decentralized exchange volume, recording $500 billion compared to Ethereum's $400 billion, indicating its growing dominance.

Solana (SOL) has seen a notable price increase, rising from the $132 support level to trade above $150, reflecting a positive market sentiment.

This recent momentum is attributed to several factors, including record ETF inflows and significant institutional investments, which have bolstered confidence in the cryptocurrency.

In the past week, Solana recorded over 28 million active addresses and 369 million transactions, indicating a surge in user engagement and activity on its blockchain.

The launch of Canada's first spot Solana ETFs earlier this month has provided traditional investors with regulated access to $SOL, further boosting interest in the token.

Institutional confidence is further demonstrated by SOL Strategies, which has initiated a $500 million facility to expand its holdings in $SOL, reflecting strong market interest.

Similarly, Upexi, a Florida-based company, plans to raise $100 million to invest in Solana tokens, showcasing long-term optimism about the asset's potential.

Solaxy has also launched a testnet block explorer, allowing users to monitor Layer-2 transactions and performance metrics in real-time, marking a significant development milestone.

Increased trading activity on platforms like Raydium and Drift has been noted, correlating with the performance of meme coins, which have gained traction in the Solana ecosystem.

The resurgence in Solana's price is linked to a recovery in its ecosystem of meme coins, with notable increases in values for coins like Bonk and Fartcoin.

As Solana's DeFi ecosystem continues to grow, its total value locked (TVL) has seen a significant recovery, reflecting increasing investor interest and confidence.