Solana price consolidates above $165 as bulls eye a breakout toward $184. Stable fees and Layer-1 momentum drive investor interest.
Solana (SOL) Retakes $170 as Helius CEO Weighs-in on L2 Fee Debates
Solana (SOL) price rebound above $170 on Sunday May 17, as sentiment shifts from Layer-2 euphoria back to Layer-1 fundamentals.
Trading at $170.44, SOL price has gained 27.3% over the past 30 days, mirroring Ethereum’s 35% upswing over the same period.
Helius CEO Mert’s latest thread, presents a new narrative hinting that Solana’s technical and economic architecture may prove more resilient than its Layer-2 competitors like Arbitrum, and Optimism.
Helius CEO Says Solana is Better than Layer L2 amid “Fee Drain” Controversy
On May 13, Helius CEO Mert took to X (formerly Twitter) , negating the popular claim that L2s are draining Layer-1s of “fee alpha.” In his post, viewed over 63,000 times, Mert countered that chain revenue is not only relevant, it’s central to sustainable blockchain economics.
“Anyone who thinks chain revenue is irrelevant is coping, You can only increase volume if you innovate below the runtime level.
- Helius CEO, Mert Mumtaz, May 16, 2025
His core argument centers around Solana’s parallel fee markets, a key differentiator from Ethereum and its rollups.
Unlike EVM-based networks where gas spikes on one app (e.g., a DEX) lead to network-wide fee hikes, Solana’s architecture isolates traffic between apps. This insulation prevents price impact and creates a more predictable user experience.
He further explains that median fee is a better pricing benchmark than the average, particularly on chains with spiking congestion like Ethereum L2s.
In a follow-up post on May 16, Mert posted a comparative chart showing Median Fee Volatility across major chains including Ethereum, Arbitrum, Base, Blast, and Solana.
The image highlights just how stable Solana’s fees remain, even under extreme network usage.
Despite handling 10 to 100 times more volume, Solana maintains its low median fee, unlike competitors who spike under load.
Key insights from the Blockwork’s shows that Solana leads with the lowest fee volatility, with Blast and Ethereum L2s show high variability, suggesting inconsistent and unpredictable fees to users
This supports Mert’s thesis that Solana’s network is not only cheaper—it’s economically sustainable, with more predictable returns for validators, users, and app developers.
What’s Next: Can SOL Flip ETH’s Market Cap in 2025?
If the market digests Mert’s data as deeply as it has absorbed L2 hype, a fundamental re-rating for Solana may be underway.
Solana would require a 400% rally from it current prices around $170, which would sending SOL toward $700.
From a short-term price action perspective, SOL must decisively break $176 and then close weekly candles above $180 to reclaim its 2024 highs. Should it do so, the next leg would target $200, a psychological level that, if crossed, invites institutional momentum and deeper capital rotation.
However, Ethereum’s recent recovery after the successful Pectra Upgrade suggest ETH is not likely to fall behind within the current market dynamics.
Solana Price Forecast Today: $184 Breakout ahead if $165 Support Holds
Solana traded narrowly on Saturday, closing at $165.55 after ranging between $164.55 and $176.80. The price action remains constructive above the 50-day SMA at $147.11 and 100-day SMA at $142.39, which now act as dynamic support levels.
Notably, the recent rally had also pushed SOL past the 150-day SMA at $168.40, although that level now acts as near-term resistance.
More so, the RSI holds above both its signal line and neutral 50, currently printing 56.67. Although it has cooled from the recent high at 65.19, the decline is orderly, suggesting consolidation rather than trend reversal.
The Parabolic SAR continues to trail price action below the candles, reinforcing an intact uptrend.
If bulls maintain control above the $165-$168 support range, a retest of the SAR resistance near $184 becomes a near-term target.
A break above that level would open a path toward $200. However, failure to hold the 50-day SMA may expose downside risk toward $147.
Frequently Asked Questions (FAQs)
Solana uses parallel fee markets, isolating congestion by app. This prevents gas spikes and ensures stable, predictable transaction fees.
Mert argued Solana’s architecture offers greater economic sustainability, countering claims that Layer-2s drain Layer-1s of fee-based value.
Solana would need a 400% rally to reach ETH’s valuation. It’s possible, but Ethereum’s upgrades and dominance make it a challenge.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/heres-solana-price-prediction-if-helius-ceos-insights-drive-sol-above-ethereums-300b-market-cap/
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