Solana Drops 4.174% as ETF Sees Minimal Trading Activity

Solana's latest price was $174.93, down 4.174% in the last 24 hours. The REX Osprey Solana (SOL) exchange-traded fund (ETF) recorded zero trading activity on four of six trading days through August 8. The fund posted no flows on Aug. 1, Aug. 4, Aug. 5, and Aug. 7, with minimal activity on Aug. 8 and outflows on Aug. 6. The REX Osprey fund is the first US-listed Solana ETF to integrate native staking mechanisms. The product operates outside standard SEC-registered spot ETF frameworks, delivering SOL exposure through indirect vehicles rather than direct crypto holdings.

CoinShares flow data showed Solana products attracted $874 million in year-to-date inflows, staying behind Ethereum (ETH) and XRP among major cap altcoins despite its position as the fourth-largest cryptocurrency by market capitalization. The trading pattern could reflect broader institutional hesitation toward Solana-focused investment products compared to Bitcoin (BTC) and Ethereum alternatives. Nansen senior research analyst Jake Kennis attributed the disparity to institutional portfolio allocation strategies. He explained that ETH is seeing a lot of new activity as institutions were likely underweight ETH relative to BTC. Solana has been mostly in the backseat for this new wave of attention, but SOL ETFs would likely pick up if institutions are looking to also diversify away from BTC and ETH.

The REX Osprey fund’s design incorporates staking mechanisms and offshore ETF allocations that differentiate it from traditional spot cryptocurrency products. Stabolut founder and CEO Eneko Knörr identified these features as adoption obstacles rather than demand deficiencies. Knörr said that SSK’s quiet tape looks more like a brand and distribution issue than a pure demand problem. Its design isn’t a simple ‘spot SOL in a wrapper’—the fund stakes SOL and can allocate a portion into other SOL ETFs/ETPs, many offshore, which adds complexity that some buyers shy away from. The fund charges a 0.75% management fee, positioning it at the higher end of cryptocurrency ETF expense ratios. Traditional spot Bitcoin and Ethereum ETFs from major issuers typically carry fees between 0.15% and 0.25%. Kennis, from Nansen, noted that the fee structure creates a cost-benefit analysis for institutional investors weighing direct cryptocurrency exposure against ETF convenience. He referenced Solana’s approximately 7% annual staking rewards, noting that the staking component seems like a major feature given the ‘passive’ yield being left on the table.

The absence of major financial institutions like BlackRock and Fidelity in the Solana ETF space contributes to limited market penetration. REX Shares operates as a smaller ETF issuer without the distribution networks and brand recognition of Wall Street’s largest asset managers. Knörr argued that early trading will likely remain lumpy until bigger brands enter the space. Structure, complexity, and limited shelf space are holding it back—interest in Solana exposure itself doesn’t appear to be the issue. As of Aug. 11, the US Securities and Exchange Commission (SEC) is still considering the approval of Solana ETFs under the more tax-friendly 1933 Act.

The Swarms project, an agentic-AI ecosystem based on Solana, launched the $swarms token, focusing on community ownership with a minimal team allocation, as stated in their documentation. The project signifies a shift toward decentralized ownership in AI ecosystems, potentially impacting similar blockchain initiatives, although funding remains a challenge without disclosed institutional backing or substantial team resources. Swarms has released updated tokenomics for $swarms on Solana, focusing on community ownership. This announcement comes as the project seeks to establish itself as an agentic-AI ecosystem with a decentralized structure. According to the Swarms DAO Docs, "When we launched $swarms, we prioritized community ownership by allocating just 2% to the team." Swarms, a Solana-based initiative, emphasizes community involvement while minimizing team allocation, allocating only 2%. This approach aims to mitigate market manipulation and promote a fair distribution of tokens among stakeholders.

Market participants have shown mixed reactions to the Swarms announcement. The project's emphasis on community ownership raises questions about its long-term financial sustainability, especially with limited team resources. Analysts anticipate potential financial hurdles due to the unsustainable funding noted in Swarms' documents. Despite these challenges, the initiative's decentralization focus may attract support from investors seeking community-driven ventures. Like other community-oriented projects, Swarms addresses common challenges such as market manipulation and funding issues. Past similar ventures have experienced difficulties in managing decentralization and ensuring sufficient resources. Expert insights from Kanalcoin suggest Swarms' approach aligns with current community trends. Data implies that while tokenomics structures focused on ownership may flourish, they may also struggle with sustainable development without substantial institutional backing.

An Alameda Research controlled wallet address has unstaked approximately $35 million worth of Solana ($SOL). According to Arkham Intelligence the address has just released 190,821 SOL tokens worth about $35.52 million. These tokens were first staked in late 2020, when they were worth around $351,960. That means their value has grown almost 100 times in less than five years. Arkham Intelligence posted the update on X, asking, “Will this be finally returned to creditors?” The unstaking comes only a week after a large blockchain move by cold wallets linked to FTX and Alameda Research. On July 31, 2025, $125 million worth of Ethereum (ETH) and Solana (SOL) was staked from these wallets. Data from Arkham shows that FTX put about $45 million worth of SOL into staking, while Alameda sent around $80 million worth of ETH to a staking service called Figment. Both transactions happened on July 30, 2025, and were confirmed on the Solana blockchain. Meanwhile, according to previous report, critics say that this found shouldn’t be returned back to customers but to remain staked.

FTX and Alameda’s legal troubles began in November 2022 after it was revealed that customer assets were being used in risky trading without permission. Alameda, which is owned and run by FTX founder Sam Bankman-Fried, was deeply tied to these operations. The scandal became one of the largest in crypto history, ending with bankruptcy filings and a criminal trial. Following that, Bankman-Fried was found guilty in late 2023 and was sentenced in 2024. Since then, FTX’s new management has been working under court orders to return funds to creditors. According to the latest updates, the company has already returned about $6.2 billion in two payouts—$1.2 billion in February 2025 and $5 billion in May 2025. A third repayment is set for September 30, 2025. The deadline for claims to be eligible in that round is August 15, 2025. Current estimates suggest total repayments could reach between $14.7 billion and $16.5 billion, depending on asset values.

Exodus Movement, Inc. (EXOD) has partnered with Superstate to tokenize its Class A common stock on Solana, announced on August 8, 2025, via Exodus's press release. This initiative could increase blockchain diversity and investor accessibility, shaping digital asset adoption. Market reactions remain undocumented, pending future developments. Exodus Movement, Inc. announced a partnership with Superstate to tokenize its Class A common stock on the Solana blockchain. This follows an official release aiming to broaden their digital asset reach beyond Algorand. The collaboration involves Exodus' use of Superstate's Opening Bell platform to issue stock tokens. This move enhances availability on Solana, complementing existing Algorand tokens and preparing for Ethereum integration. The immediate impact of this collaboration will influence the Solana network and investor accessibility. Superstate provides the platform allowing seamless integration into new blockchain ecosystems. By tokenizing stock shares, Exodus aims to democratize access to investments, signaling a future finance landscape shift. The initiative sets a precedent for other U.S. public companies. JP Richardson, CEO of Exodus, noted: "Exodus has always believed in building a world where every asset becomes tokenized. Partnering with Superstate enables us to extend the availability of Exodus’ common stock tokens to new chains like Solana and Ethereum, creating more opportunities for innovation and investor access. This strategic step lays the foundation for the future of finance and digital asset adoption.” Email correspondence, regulatory filings, or other official communication will outline the next steps for market involvement. This move by Exodus expands the boundary for tokenized assets, with the potential for widespread regulatory and financial changes.

Recent institutional inflows into the cryptocurrency market have highlighted Solana's growing prominence, with the altcoin attracting significant capital amid broader adoption trends. Last week, Solana recorded $21.8 million in institutional inflows as part of a $572 million overall surge into digital asset products, largely driven by new U.S. policies allowing cryptocurrencies in 401(k) retirement plans. This influx underscores a strategic shift toward utility-driven projects that offer scalable infrastructure for real-world applications like decentralized finance and cross-border payments.

Solana's role as a key player in facilitating high-speed transactions, with its capacity for processing up to 65,000 transactions per second, was a major factor in attracting this institutional capital. Its ecosystem continues to expand in the DeFi and NFT sectors, reflecting increased confidence from investors who prioritize technological efficiency over speculative assets. This focus on utility aligns with a broader market trend where projects with tangible use cases are favored, contributing to Solana's robust inflows compared to other altcoins.

Further emphasizing Solana's outlook, recent AI model analyses flagged it as one of the top performers for 2025, reinforcing its potential in the evolving crypto landscape. The increased institutional activity highlights Solana's resilience and adaptability, despite short-term market fluctuations, positioning it for sustained growth in areas such as cross-chain infrastructure and global payment systems without overshadowing its peer projects.