Solana Drops 0.982% as Market Cools, ETF Proposals Revised

Solana's latest price was $202.76, down 0.982% in the last 24 hours. The cryptocurrency's spot volume bubble map indicates that the market is currently in a cooling phase, following recent periods of high speculative activity. This map combines price movements and trading volumes to identify different phases in the market, such as overheating, heating, or consolidation. Historically, red and dark red clusters on the map have marked overheated phases for Solana, which were followed by corrections due to high speculative demand and strong price surges. In contrast, the current gray and green clusters suggest reduced speculative activity and market stabilization, signaling potential accumulation zones for traders to observe. Historical trends show that periods after cooling bubbles can precede renewed upward price movements if spot volumes regain momentum.

During the 2021 bull run, Solana's spot volume map was dominated by red and dark red clusters, reflecting heightened market activity and speculative demand. These overheating signals often coincided with price surges, followed by sharp corrections. In 2022, as prices declined, green bubbles appeared more frequently, indicating market cooling and accumulation periods. Between 2023 and 2024, heating signals reemerged on the Solana spot volume map, with large red bubbles appearing near the $200 level, signaling strong speculative interest and overbought conditions that often preceded brief corrections or consolidations. Currently, the spot volume map shows neutral gray and cooling green bubbles, suggesting that the market has moved out of overheated phases and is in a consolidation phase. Traders observing this pattern can see potential accumulation before the next upward movement. This cooling pattern may support renewed market strength if volumes increase again, as historical trends suggest that periods following overheated clusters often precede potential rallies.

Major investment firms have revised their proposals for Solana-based exchange-traded funds (ETFs) in the United States. Canary Capital, Franklin Templeton, and VanEck submitted amended S-1 filings to the Securities and Exchange Commission in 2025. The filings showed continued talks with regulators and detailed new structures for staking, custody, and taxation. The updated documents introduced staking features for the funds, with Marinade Finance selected as the only staking provider. Each trust planned to allocate most of its holdings to Marinade for at least two years, with the rewards set to be reinvested after deducting fees, increasing the fund’s net asset value over time. The filings also highlighted Marinade’s instant unbonding tool, which allowed immediate liquidity for redemptions, giving the funds more flexibility to handle inflows and withdrawals. Custody arrangements were also revised, with Solana holdings split between hot and cold wallets, and the custodian keeping full control of private keys. Investors would not hold tokens directly, and the filings admitted that risks remained despite these safeguards. Daily disclosure was another change, with each ETF’s website publishing its net asset value, total holdings, and data on whether shares traded at a premium or discount. The new drafts expanded sections on risk, listing penalties from validator slashing, possible network outages, and potential validator failures. The possibility of forks or airdrops not being supported by the trust was also included, and the filings added tax language for the first time, with sponsors aiming for grantor trust treatment under US law. They also admitted that taxation of staking rewards remained uncertain, which could influence how investor returns were treated.

DeFi Development Corp., a company focused on cryptocurrency investments, has launched DFDV UK, the first Solana (SOL)-based treasury vehicle in the United Kingdom. The new entity is part of the firm’s plan, called the Treasury Accelerator, to create a worldwide network of funds that invest in Solana. For this, they bought a 45% share of London Stock Exchange-listed Cykel AI, which helped them enter the UK market. DFDV UK will focus on buying and holding Solana and related digital assets, like Dogwifhat, and will also support platforms like Kraken by helping validate transactions. This aligns with DeFi Development Corp.’s goal to increase the value of its investments for its shareholders. The firm aims to increase its value over time and has five more Solana-focused funds in the works, highlighting plans to grow in other countries. DeFi Development Corp. aims to strengthen its position in the crypto market by staking Solana and building up assets. As more people invest in crypto funds globally, the company believes DFDV UK and its future funds will boost its Solana per share value, a measure that connects its stock performance to Solana’s price. The company’s initiatives also highlight rising interest in Solana investments and show DeFi Development Corp.’s dedication to supporting Solana’s growth.

USD1, the stablecoin issued by the Trump-backed DeFi project World Liberty Financial (WLFI), looks set to deploy on Solana. The project hinted at the possibility in a post on X. According to the post from the WLFI official account, USD1 is meeting the internet capital markets. The post also included an image showing the golden eagle icon of WLFI coated in the purple hues of Solana. It read: “USD1 meets internet capital markets. Announcement coming soon.” While the project itself has yet to announce the deployment, a Twitter user known as CharlesWLFI and self-identified as Head of Solana Ecosystem for World Liberty Financial has confirmed it. Charles posted that USD1 will arrive on Solana sooner than anyone expected. He added that the project is just getting started. The user only joined X in August 2025, and the USD1 to Solana is their first post, enough to raise suspicions about their authenticity. However, WLFI co-founder Zach Witkoff confirmed that Charles is part of the team, adding that the project is coming to Solana. Meanwhile, other reports further confirm that the speculation is likely true. DeFi protocol Raydium has also hinted at it, posting that “Solana is about to get a lot more stable” while BONK.fun stated that the story of the dog and eagle is set to start. Onchain data also supports the speculation, with one user sharing a SolScan screenshot showing that 100 million USD1 tokens have been minted on the network in preparation for the launch. The potential deployment of USD1 on Solana continues WLFI’s efforts to increase adoption of the stablecoin. Since launching in April 2025, USD1 has seen sizable growth with its supply increasing by $2 billion in the first few days. However, its growth had plateaued since then and remained at $2.402 billion, enough to rank it sixth among top altcoins. Solana will be the fourth blockchain network to power the stablecoin, which is already live on BNB Smart Chain, Ethereum, and Tron Network. Interestingly, WLFI had already minted USD1 on Solana some days ago. The DeFi project at the time minted $30 million USD1 on Solana, with Witkoff stating that it is now available on the network. With its deployment on Solana, USD1 will be hoping to see broader and more diverse use across multiple chains. Currently, 88.52% of its $2.40 billion supply is on BSC, while Ethereum has over 10% and TRON has only 1%. However, the project has been pushing to increase usage through partnerships. Several exchanges already support it, including Coinbase, Binance, Bullish, Gate.io, and HTX. DeFi protocols, including JustLend on TRON, Moonpay, and PancakeSwap on BSC, also support the stablecoin. The stablecoin points program launched in early August also appears to be part of the efforts to boost adoption. Several exchanges, including Kucoin, MEXC, Bitget, Gate.io, and others, are all involved in the loyalty program. The USD1 effort to boost adoption comes amidst broader growth in the stablecoin market. According to DeFiLlama, the stablecoin market cap increased by $7.24 billion in the past seven days to hit a new high of $283.46 billion. This continues the trend of stablecoin expansion fueled by Ethena USDe and MakerDAO DAI. In the past month, the two stablecoins increased by 49.79% and 20.25% respectively, while Circle USDC rose by 12% to cross over $71 billion. USD1 only increased by 10% within that time. The growth of these stablecoins supplies, including smaller-cap ones such as PayPal PYUSD and Ripple RLUSD, which are up more than 20% in the past month, has impacted Tether USDT’s dominance. The leading stablecoin has a 59% dominance with a market cap of $167 billion.

The Solana ecosystem has witnessed significant infrastructure development with the launch of an automated token trading bot for its blockchain network. This new sniper bot enhances transaction efficiency within the Solana environment, catering to the growing developer and investor interest in one of the leading crypto ecosystems. Its implementation represents ongoing efforts to optimize tools for participants in the Solana network.

Analysis of market structure points to Solana consolidating within a key technical range. Observers note the establishment of a pattern characterized by gradually ascending support levels over recent weeks, signaling sustained underlying demand. The consolidation phase near significant technical thresholds is viewed by analysts as a potential precursor to a decisive directional move, contingent on activity levels and participant behavior around these established markers.

Sentiment among substantial network participants shows evolving patterns, with notable shifts in capital allocation strategies emerging. Significant holders within the Solana network have demonstrated interest in other projects, moving funds toward new ventures exhibiting features like presale scarcity and institutional-grade security frameworks. This reallocation, occurring alongside the infrastructure and liquidity developments, highlights the dynamic nature of capital flows within and around the Solana ecosystem during the ongoing market cycle.

Collectively, these developments point towards continued maturation of the Solana network's infrastructure and market depth. While technical consolidation persists, record-setting liquidity metrics and strategic positioning by significant participants suggest sustained foundational strength. The ecosystem's ability to foster new tools like the automated trading bot further demonstrates its capacity to support sophisticated trading activity and developer innovation moving forward.