Solana Drops 3.675% Amid Market Volatility, Institutional Interest Grows

Solana's latest price was $182.71, down 3.675% in the last 24 hours. This price change reflects the ongoing volatility in the cryptocurrency market, which is influenced by a variety of factors including regulatory developments, technological advancements, and institutional investments.

REX-Osprey’s Solana Staking ETF, integrated with JitoSOL, now offers U.S. investors full staking rewards, launching on July 2, 2024. This integration sets a precedent in crypto ETFs, merging traditional finance with DeFi yield, indicating growing institutional interest and potential market shifts in staking strategies. The ETF surpassed $100 million AUM rapidly, reflecting the robust market response and confidence in the new system's efficiency and shareholder benefits. The financial implications are notable, with the ETF surpassing $100 million AUM, signalling heightened institutional interest in crypto yields. The market response has been robust, reflecting confidence in the new system's efficiency and shareholder benefits. Initial regulatory outcomes remain speculative as no direct guidance from entities has been released regarding this framework. However, this could catalyze further experimentation with yield-generating crypto ETFs among financial institutions cautiously observing the results. The integration of JitoSOL positions Solana to potentially expand its influence, bolstered by institutional-grade liquidity mechanisms that promise sustainable investment opportunities. This step not only impacts Solana directly but also the broader DeFi landscape.

MoonPay has launched a new feature that lets Solana holders earn passive income. The company announced its liquid staking program for Solana on July 23. This product allows users to earn an 8.49% annual yield on their SOL tokens. With this new service, MoonPay desires to simplify staking and make it flexible. Crypto staking is a complex or risky process for many individuals, as it tends to freeze their coins. The concept of MoonPay is not the same. Liquid staking allows its users to generate rewards without losing their funds. When individuals put their SOL as stakes, they get a token known as mpSOL. This token is a stake of their SOL. The positive aspect of the mpSOL is that one can trade or engage in other DeFi initiatives. This implies that individuals have the option of moving or putting their assets to use even as they get rewarded. The rewards are changed after 48 hours. Therefore, users get to see their staking profit in a shorter period rather than weeks or months. No lockup period as well. Anyone can unstake their SOL at any time they desire. This is what makes it more of a savings account with added advantages. According to MoonPay, this service is available in more than 100 countries. But it is not yet present in the European Economic Area and New York. The main idea is that any user can begin staking with only a dollar, and it is not only significant investors who can do it. This action places MoonPay against other Solana liquid staking operators such as Marinade and Jito. MoonPay, however, aims at being different by prioritizing simplicity. The company is interested in the interests of ordinary individuals, not necessarily well-educated in crypto. It has a simple interface that allows a user to stake by merely making a few taps and does not have to worry about complex crypto procedures. The CEO of MoonPay, Ivan Soto-Wright, said that the goal is to give people a staking experience similar to a traditional savings account. He feels that the blockchain has the potential to give higher returns and, at the same time, makes things simpler. The vision aligns with the increasing demand for simple ways to earn crypto by those who are just starting and retail investors. MoonPay also does not take the rules lightly. Not too long ago, New York State granted the company a BitLicense. This license enables it to carry out its business in several sections in the U.S. It can also assist MoonPay in establishing confidence both with the regulators and customers. This is the new staking feature that demonstrates how the ecosystem of Solana continues to expand. Increasingly more companies provide the opportunities of passive income generation with flexible funds. The trend appeals to retail investors and institutional investors. MoonPay is part of the trend of companies that operate with the concepts of traditional finance and apply blockchain technology by launching this product. Since more individuals seek greater returns, such convenient staking solutions may become extremely popular. On the whole, the step of MoonPay demonstrates the efforts of crypto firms to simplify and make DeFi services accessible to all. This would enable more individuals to make additional income out of their crypto assets and not lose control of their money.

The team behind the Solana blockchain has released a long-term roadmap detailing their strategy to make the Solana blockchain the foundational layer for global internet capital markets (ICMs) by 2027. ICMs, a term coined by former Solana Foundation core team member Akshay, refers to a “globally accessible ledger where entities, currencies, and cultures are tokenized,” allowing “anyone with an internet connection access to capital markets.” Solana’s “original mission” was to build the “decentralized backbone” for ICMs, according to Solana’s new Internet Capital Markets Roadmap. Increasing bandwidth and reducing latency (IBRL) are absolutely necessary — but not sufficient to achieve this. The third pillar of Solana’s roadmap needs to address the intricacies of market microstructures. Until now, it wasn’t clear how market microstructure for ICM should differ from TradFi. The roadmap said, adding that the ecosystem’s builders have now consolidated around a shared vision: Application-Controlled Execution (ACE), aiming to give smart contracts “millisecond-level control over their own transaction ordering.” Market microstructure is the single most important problem in Solana today. The roadmap added, describing ACE as a key solution to building a flexible, high-performance transaction environment that diverges from traditional finance. Solana’s 2027 roadmap proposes multiple architecture improvements to enable a “flexible market microstructure” on the mainnet. In the next three months, the roadmap proposes the launch of Jito’s Block Assembly Marketplace (BAM) transaction processing system, which aims to give validators and traders new tools to “improve performance and create value.” The BAM testnet is set to launch in the next few days. In the medium term, the roadmap highlights the rollout of DoubleZero, a dedicated peer-to-peer fiber network designed to replace the public internet for Solana transactions. The network is already in testnet with over 100 validators and 3% of mainnet stake and is scheduled for full launch by mid-September. These developments follow Solana’s recent network upgrade, which increased block capacity by 20% to 60 million compute units. Further throughput increases are planned before the end of 2025.

Upexi, Inc. has purchased 83,000 Solana (SOL) for $16.7 million, bringing its total holdings to 1.9 million SOL, now valued at approximately $381 million. Upexi's acquisition of Solana highlights their belief in the cryptocurrency's potential. Market observers are noting its impact on institutional investment trends within the blockchain sector. Upexi, Inc. announced its purchase of 83,000 Solana tokens, significantly boosting its crypto treasury and reinforcing its strategic interest in blockchain assets. This move adds substantial weight to Upexi's investment strategy. CEO Allan Marshall stated this aligns with their long-term plans to benefit shareholders. With this acquisition, Upexi's total Solana assets have risen to 1.9 million tokens valued at $381 million. Upexi's inclination towards Solana signals a noteworthy development in corporate cryptocurrency treasury management, reflecting a growing institutional confidence. The investment solidifies Upexi's position within the cryptocurrency industry, showcasing a trend among public companies embracing digital assets. This purchase adds market momentum, underscoring a tangible underside to current market dynamics as Solana gains traction. Upexi's leadership sees regulatory progress around digital assets as beneficial. The company's anticipation of a positive legislative environment foregrounds its investment strategy, promising potential upside for stakeholders. Their commitment to maintaining significant cryptocurrency portfolios is visible in grand moves such as this. Experts believe Upexi's acquisition might influence Solana’s market valuation and enhance credibility in the institutional adoption of blockchain technologies. Historical acquisition trends by Upexi underline a consistent commitment to digital innovation and strategic asset management.

Solana Labs and Jito Labs have been added as co-defendants in a federal lawsuit tied to the Pump.Fun platform. The amended complaint was filed on July 22 in the Southern District of New York by Burwick Law. The suit alleges the two firms played an active role in a $1.5 billion fraud scheme involving memecoin launches. Originally filed against Pump.Fun and its affiliates, the lawsuit now claims Solana Labs and Jito Labs went beyond offering infrastructure. The filing accuses them of directly supporting Pump.Fun’s operations. These operations included fast token launches and fee generation targeting retail traders. According to the complaint, Pump.Fun ran as a disguised gambling platform. The project allegedly operated without investor protections or proper compliance checks. Users could launch tokens without identity verification. This structure allegedly made the platform vulnerable to criminal abuse. The lawsuit highlights a specific example involving the Lazarus Group. The North Korean-linked group allegedly used Pump.Fun to launch a memecoin called “QinShihuang.” The filing claims they funneled proceeds from the Bybit exchange hack through this coin. Trading volume for the coin reached $26 million, which was then converted into Solana’s SOL token. All parties are now charged under the Racketeer Influenced and Corrupt Organizations (RICO) Act. The suit describes a coordinated enterprise aimed at defrauding retail investors through unregistered securities offerings and market manipulation. The lawsuit seeks damages and injunctive relief, alleging that the defendants' actions caused significant financial harm to investors. The legal battle underscores the growing scrutiny on the cryptocurrency industry and the need for robust regulatory frameworks to protect investors from fraudulent activities.