Solana News Today: Bullish ETFs and Partnerships Can't Stop Solana's Slide Amid Sector-Wide Sell-Off

Solana's on-chain activity has plummeted amid a broader crypto market downturn, with the network's active wallet count-once above 32 million-now under pressure as key metrics deteriorate. The decline, part of a sector-wide selloff, has seen Solana's price breach critical support levels, while trading volume and investor sentiment wane despite recent ecosystem developments.

The digital asset, which hit a low of $128 this week, has extended its weekly loss to 13.4%, driven by automated selling triggered by the breakdown below a pivotal psychological price threshold. Trading volume for Solana dropped 26.7% in 24 hours, signaling reduced market participation. Analysts warn that without a daily close above the seven-day simple moving average, further declines toward $120 could follow.

The selloff contrasts with recent bullish catalysts, including Fidelity's launch of the Fidelity SOL Fund-a staking-focused ETF with a 0.25% fee-and 21shares' Solana ETF (TSOL), which added to the growing U.S. product lineup. Meanwhile, Moomoo expanded Solana trading for retail investors in Hong Kong, and Coinbase's acquisition of Solana-based DEX Vector aims to bolster on-chain trading infrastructure. Yet these developments have failed to offset the current bearish momentum.

The retreat mirrors broader macro trends affecting the crypto market. Ethereum, another major L1, faces liquidity tightening and leveraged position unwinding, with ETH futures open interest declining 7% week-on-week to $6.7 billion-the largest outflow since July. Bitcoin's struggles have also weighed on altcoins, as institutional flows favor BTC's perceived safety amid ETF-driven inflows.

Despite the near-term pain, some projects continue to gain traction. Solflare's partnership with Mastercard to launch the first self-custody debit card on Solana highlights efforts to integrate crypto into everyday finance. The card, now available in the EEA and UK, allows users to spend USDC directly from non-custodial wallets, emphasizing security and ease of use.

For Solana, the path forward hinges on reclaiming key technical levels. "Selling momentum may be losing steam," noted analysts, citing the MACD's tentative upward turn. However, the network must navigate risks including staking illiquidity, market volatility, and custodial security concerns, as highlighted by 21shares' ETF disclosures.

The broader L1 landscape remains fragile. Ethereum's validator activity has plateaued, and while its upcoming Dencun upgrade promises scalability improvements, near-term demand is constrained by macro headwinds.