Solana Drops 3.718% Amid ETF Hopes, DeFi Growth

Solana's latest price was $185.55, down 3.718% in the last 24 hours. Solana has been consolidating near a key technical level, forming an ascending triangle pattern. This pattern indicates that buyers are absorbing sell pressure at progressively stronger levels, suggesting market strength. Analysts have noted that Solana may offer a final buy-the-dip chance before targeting higher levels, with a potential path where the price revisits a certain range before surging past resistance. The narrowing price action inside the triangle suggests compressing volatility, often preceding strong directional movement. A decisive break above resistance would likely prompt short covering and attract momentum buyers.

Solana held above a key technical level as traders assessed the combined impact of potential ETF approvals and rising decentralized finance activity. Analysts described the pullback as a healthy reset within a broader uptrend, with short liquidations adding fuel to the rebound. The rebound from support also suggested active buying interest despite recent volatility. Maintaining this level was seen as important for preserving higher-timeframe bullish structure. Reports indicated that up to eight Solana ETFs could be on track for regulatory approval, offering institutional investors a regulated channel to gain exposure to SOL, potentially unlocking fresh liquidity. Past launches of Bitcoin and Ethereum ETFs expanded market depth and attracted long-term holders. Analysts said a similar effect on SOL could strengthen the investor base and increase resilience to market swings. The SOL price’s rebound triggered more than $30 Million in short liquidations over a 24-hour period, reflecting how quickly bearish bets were overturned as momentum shifted. Short squeezes occur when traders betting against an asset are forced to close positions as prices rise, often accelerating the uptrend. With many short positions cleared, SOL faced less immediate selling pressure. This dynamic could make it easier for the token to test resistance near a certain zone. Technical charts showed support levels at a certain point and a deeper demand zone between two points. Analysts said holding above a certain level would preserve the broader bullish outlook, especially with ETF developments still in focus. A controlled dip into support could give the market room to build fresh momentum. Analysts also noted that defending a certain level in the short term would indicate strong buyer commitment.

Data from SolanaFloor showed that the network’s DeFi total value locked climbed to a certain figure, its highest level since February 2025. Kamino Finance, Jito Sol, and Jupiter Exchange accounted for more than a certain figure of that amount, underscoring concentrated liquidity in major protocols. Analysts said the increase in locked value signaled rising participation in the Solana ecosystem. This growth aligned with the token’s technical resilience and the optimism surrounding potential ETF approvals. If the SOL price holds above a certain level and reclaims a certain zone, analysts said a push toward a certain range would be within reach. The combination of reduced selling pressure, strong support levels, and increasing on-chain activity suggested the market had multiple drivers for continued momentum.

Solana trading activity contracted sharply in the second quarter while the network’s core infrastructure metrics strengthened across multiple dimensions. The total application revenue generated on the network fell a certain percentage quarter-over-quarter to a certain figure from a certain figure. Furthermore, average daily spot decentralized exchange volume dropped a certain percentage to a certain figure, with perpetual trading volumes declining a certain percentage to a certain figure daily. The revenue decline stems from reduced memecoin speculation that drove record trading volumes in the first quarter. Applications dependent on trading fees, including most DEX platforms, posted lower quarterly revenues as market participants scaled back speculative activity. Despite the drop in speculative activity, different on-chain metrics signal strong fundamentals for Solana. The total value locked in DeFi protocols on the network grew a certain percentage quarter-over-quarter to a certain figure, maintaining Solana’s position as the second-largest network by TVL after surpassing Tron in November 2024. The App Revenue Capture Ratio increased to a certain percentage from a certain percentage, indicating applications captured a certain figure in revenue for every a certain figure spent in transaction fees. Liquid staking penetration rose to a certain percentage of SOL supply from a certain percentage, enabling expanded DeFi applications built on yield-bearing SOL. Total staked value increased a certain percentage to a certain figure, with validator decentralization improving modestly as the Nakamoto coefficient reached a certain figure. The Nakamoto coefficient measures blockchain decentralization by calculating the minimum number of entities needed to control over 50% of network resources and compromise security. Furthermore, Anza announced Alpenglow, a consensus protocol redesign targeting sub-150 millisecond finality. The proposal represents a 100-fold improvement over the current confirmation times. The upgrade eliminates vote transaction fees and streamlines client operations for smaller validators. Institutional adoption accelerates. The SEC approved Rex Osprey’s Solana Staking ETF on a certain date, marking the first U.S.-approved staking crypto exchange-traded fund. However, the product functions outside traditional SEC-registered spot ETF structures, providing SOL exposure through derivative instruments instead of holding the digital asset directly. Nine other firms have filed applications to launch spot Solana ETFs, with approval decisions expected by a certain date. Network usage remained stable with non-vote transactions increasing a certain percentage to a certain figure daily, while fee payers declined a certain percentage to a certain figure. The report concluded that the quarter demonstrated Solana’s capacity to sustain infrastructure development and institutional interest independent of speculative trading cycles.

Significant institutional confidence continues to bolster the Solana ecosystem. DeFi Development Corp executed a substantial treasury expansion, purchasing $22 million worth of SOL tokens. This acquisition increases their total SOL holdings to 1.42 million tokens, representing a strategic bet valued at $273 million on the ecosystem's underlying infrastructure and future potential. This move signals strong institutional belief in Solana's long-term viability beyond short-term market fluctuations.

Solana's role within the decentralized finance landscape demonstrates notable expansion. The network experienced a significant surge, with its total value locked (TVL) in DeFi protocols climbing sharply, reflecting an $11.24 billion increase. This surge underscores growing developer activity and user adoption leveraging Solana's scalability for complex financial applications. Ecosystem activity also encompasses Solana-based meme coins like Bonk. Bonk has recently stabilized around key technical levels, attracting attention from institutional traders anticipating potential movements from its current consolidation phase.

Optimism regarding broader market integration persists for Solana. Hopes surrounding potential regulatory approval for a U.S.-listed spot Solana Exchange-Traded Fund (ETF) continue to circulate. Such approval would represent a major milestone, increasing mainstream investor access and validating Solana's status alongside other major blockchain networks within traditional finance channels.