Solana’s price and on-chain metrics are cooling at the same time, eroding investors’ reasons to stay. In the derivatives market, demand for leveraged long positions has collapsed, while on-chain metrics indicate an excessive reliance on meme coins and retail investors. DeFi app revenue is concentrated 40% in meme coin launchpads, underscoring the shift in early ecosystem activity.
Solana ETF assets under management stand at $2.1 billion, about 14% of Ethereum ETF assets, highlighting challenges in earning institutional trust. This gap underscores ongoing hurdles in attracting durable institutional flows to SOL-related products.
With leveraged demand signaling risk-off sentiment, institutions remain cautious about SOL ETF inflows. The near-term trajectory will depend on broader ecosystem improvements and a diversification of use cases beyond meme-driven momentum.
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