Solana News Today: Institutional ETFs Spark Altcoin Surge as Ethereum's Momentum Fizzles

Solana (SOL) has emerged as a standout performer in the cryptocurrency market, driven by robust network activity and a surge in institutional interest. The blockchain generated $2.85 billion in annual revenue in 2025, a figure that underscores its growing adoption. This financial strength contrasts with Ethereum's (ETH) recent struggles, as the latter saw a 45% drop from its August 2025 peak near $4,950 to November lows around $2,700. Analysts attribute Ethereum's decline to a shift in activity toward Layer 2 networks and slower economic growth, while Solana's ecosystem benefits from innovations like Firedancer, a high-performance validator client, and expanding user adoption according to market analysis.

The institutional validation of Solana has accelerated with the launch of spot ETFs. Franklin Templeton's Solana ETF (SOEZ), which filed final SEC paperwork in November 2025, exemplifies this trend. The ETF, trading on NYSE Arca, charges a 0.19% fee and waives sponsor fees on the first $5 billion in assets until May 2026, aiming to attract both institutional and retail investors. This move follows Franklin's successful XRP ETF debut and aligns with broader market dynamics: Solana ETFs have drawn over $380 million in net inflows within three weeks of their October 2025 launch. The ETF structure, which holds actual SOL tokens and tracks the CF Benchmarks Solana Index, provides direct market exposure akin to traditional commodity ETFs according to industry reports.

The competitive landscape for altcoins is intensifying. 21Shares, Fidelity, and VanEck have also launched Solana ETFs, contributing to 21 consecutive days of net inflows for the asset class. Meanwhile, XRP ETFs have seen $587 million in combined inflows since November 13, 2025, with Franklin's XRP product alone drawing $70 million in its first two days. These developments highlight a shift in institutional capital toward altcoins, a trend fueled by regulatory clarity on commodity-based crypto ETFs in 2025.

Ethereum's challenges, meanwhile, are structural. While it retains deep liquidity and institutional trust, its economic engine has slowed as more activity migrates to Layer 2 solutions. Solana's price trajectory—peaking at $295 in January 2025 before consolidating to a $127–$140 range by November—reflects broader market volatility but also resilience in maintaining key support levels. The contrast with Ethereum's August peak to November slump underscores Solana's potential to outperform in 2026, particularly as institutional adoption accelerates.

Looking ahead, the launch of Franklin's Solana ETF could catalyze further demand. The fund's fee structure and regulatory approval signal growing mainstream acceptance of crypto assets, a trend mirrored by other issuers like Bitwise and Grayscale. However, volatility remains a risk, and regulatory developments could still reshape the ETF landscape. For investors, the combination of Solana's network strength, Ethereum's waning momentum, and XRP's ETF traction positions these three altcoins as key candidates for December gains and beyond.