Solana experienced a significant surge of 18%, briefly surpassing $205, igniting speculation about a potential target price of $250. However, market hesitation remains due to factors such as declining DEX volumes and cautious derivatives market activity. While on-chain indicators show strong momentum, the lack of a major catalyst could hinder Solana’s climb towards this ambitious goal. 18% growth propelled Solana to nearly $205 before retreating slightly below $200. This surge significantly outperforms broader crypto market performance, propelling Solana’s market cap past $107 billion and nearing BNB’s $117 billion. The surge is fueled by a substantial increase in SOL transactions and network fees over the last 30 days, with a 48% jump in transaction volume and 43% rise in collected fees reflecting increased activity within the Solana ecosystem. However, this strong momentum faces some obstacles. Weekly DEX volumes on Solana have declined for three consecutive weeks, standing at $20.6 billion, lower than Ethereum’s $116.2 billion. Additionally, the derivatives market, where Solana perpetual futures contract funding rate is at 12%, signals a cautious sentiment and prevents a surge in leveraged trading. This suggests that traders remain hesitant for further engagement until a clear catalyst emerges. Solana’s previous rally to $200 on July 22 also lasted less than a day, adding uncertainty about its sustained trajectory towards the $250 target. The absence of immediate catalysts like SEC approval for a spot Solana ETF is hindering institutional investors from fully committing. Overall, while Solana exhibits strong fundamentals with a growing ecosystem and not overheated by leverage, it faces challenges in breaking through $250. A surge beyond this mark may require substantial purchases, particularly from institutional investors. The market awaits decisive signals to determine whether the Solana rally will continue or falter.