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Solana (SOL) price fell 8% on Thursday, falling below $180, erasing all of its year-over-year gains in 2025 and falling 4% for the year. The decline came after the launch of the first U.S. spot Solana ETFs, which attracted a combined inflow of $117 million. The market generally believes that Jump Crypto transferred 1.1 million SOL tokens worth $205 million to Galaxy Digital, which may be rotated to Bitcoin, putting significant pressure on market sentiment.
The benefits of ETF launch were offset: SOL price bucked the trend and fell 8%
Solana’s price continued to fall despite the significant positive news from the ETF approval, highlighting the market’s sensitivity to large transaction outflows.
- Price Performance: Solana price fell 8%** on Thursday, continuing its weekly decline and falling below** the $180 mark, resulting in its cumulative decline of 4% so far in 2025.
- ETF inflows: The first U.S. spot Solana ETFs failed to support prices despite attracting huge amounts of money. The Bitwise Solana Staking ETF (BSOL) saw net inflows of $116 million in its first two trading days, and Grayscale Solana Trust also attracted $1.4 million in inflows on its first day after transforming into an ETF.
- Comparison with mainstream coins: Compared with Bitcoin and Ethereum prices, which still maintain a year-on-year increase of more than 40%, SOL’s performance lags significantly. Bitwise’s ETF launch attracted a total of $339 million (including seed investment) but was unable to withstand the selling pressure.
Impact of whale transfer: Jump Crypto’s $205 million SOL transaction sparked market speculation
Market observers believe that a large on-chain transaction was the main reason for the deterioration in Solana price sentiment.
- Large transfer: Well-known crypto trading company Jump Crypto transferred 1.1 million SOL (worth approximately $205 million) to Galaxy Digital.
- Rotation Speculation: Blockchain sleuths Lookonchain speculates that Jump Crypto may be rotating funds from Solana to Bitcoin, as at the same time, Jump Crypto received 2,455 BTC worth $265 million.
- Market Sentiment Impact: This whale exodus, even just asset rotation, can create psychological pressure on the market in the short term, especially during such a critical period for ETF launches.
Institutional Bullish: Solana’s Dual Advantage in Stablecoin and Tokenization Markets
Despite short-term price pressure, executives like Bitwise remain bullish on Solana’s long-term prospects.
- “Win-win potential: Matt Hougan, chief investment officer at Bitwise, believes Solana has “win-win” investment potential: bet on the growth of the stablecoin and tokenized infrastructure market and win a growing share of that market.
- Market room for growth: Hougan predicts that this market could grow 10x or more, and Solana is well-positioned with its high-speed and user-friendly technology, community, and "ship fast" attitude.
- Institutional adoption: Financial services company Western Union announced that it will adopt the Solana blockchain as its stablecoin settlement system, confirming institutional recognition of Solana’s technical capabilities.
Competitive Landscape: Solana Challenges Ethereum’s DeFi Dominance
In the stablecoin and DeFi fields, Ethereum currently still dominates, but Solana’s catching up momentum cannot be underestimated.
- Ethereum Advantage: Ethereum’s stablecoin has a market cap of over $163 billion and a total value locked (TVL) of over $85 billion.
- Solana’s catch-up: Solana’s stablecoin has a market cap of over $14.9 billion and a TVL of over $11.3 billion. Hougan sees Tron, Solana, and BNB Chain as the main contenders to challenge Ethereum’s dominance.
- Current operating advice: The launch and institutional adoption of Solana ETF heralds positive long-term fundamentals. Investors can view short-term price corrections as good opportunities for long-term allocation, but need to be wary of further volatility caused by whale selling pressure.
Conclusion
Solana's price plunge amid huge ETF inflows reveals the huge impact of short-term flows and whale behavior on sentiment in the crypto market. Jump Crypto’s large transfers sparked speculation about asset rotations, temporarily dampening excitement around ETFs. However, from the perspective of institutional long-term vision, Solana has high hopes in the stablecoin and tokenization field, and its technical advantages and growing ecosystem still constitute a strong long-term bullish narrative.
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