Solana News Today: Institutional Bet on Solana's Speed Fuels $417M ETF Inflows, Outpacing BTC, ETH

Solana Dominates Blockchain Activity with Record $29B Weekly DEX Volume

Solana's blockchain network has surged to the forefront of decentralized finance (DeFi) activity, with daily transactions and decentralized exchange (DEX) volume underscoring its growing dominance. According to DefiLlama data, Solana processed approximately 70 million transactions per day in October, while its DEX volume hit $143 billion for the month—translating to roughly $29 billion in weekly trading activity, according to a Cryptoslate analysis. This performance has positioned Solana as a formidable competitor to Ethereum and other layer-1 blockchains, even as debates over scalability and institutional adoption intensify.

A recent sign of renewed confidence in Solana came from a major whale transaction. The investor known as "2z4gKC," who had staked over 23,000 SOL (worth $4.37 million) and remained dormant for 10 months, re-entered the market by spending $16,700 on 1.12 million $GHOST tokens, according to a CoinCryptoNewz report. Analysts view such activity as a bullish signal, reflecting optimism about Solana's ecosystem developments and potential for future growth.

Institutional interest in Solana has also accelerated, with exchange-traded funds (ETFs) playing a pivotal role. The Bitwise Solana ETF (BSOL) alone attracted $417 million in inflows during its debut week, outpacing Bitcoin and Ethereum ETFs that faced combined outflows of $750 million, according to a Coinotag report. This trend highlights a strategic shift among investors seeking exposure to high-performance blockchains. "Solana's momentum underscores the appeal of scalable networks in a maturing market," said market analyst Lark Davis in Coinotag.

The surge in Solana's popularity has sparked public debates with rivals like Ripple. A Solana Foundation manager, Vibhu, challenged XRP advocates to a facts-based comparison of network activity, citing stark disparities. While Solana averages 2.5 million daily active accounts, XRP's figure has stagnated at around 25,000 for three years, according to a Crypto.news article. Vibhu emphasized that Solana's stablecoin transfer volume alone reached $2 trillion in October, dwarfing XRP's $50-60 billion monthly transfers, according to a TheCoinRise report. Ripple's supporters have accepted the challenge, with former executive Matt Hamilton vowing to participate in a live debate.

Solana's technical advantages are further cementing its position. Unlike Ethereum, which routes most DeFi activity through rollups, Solana executes all transactions on a single layer, maintaining lower fees and faster processing times. With a Nakamoto Coefficient of 20 and 1,295 validators, the network's throughput stands at 1,100 transactions per second, a figure detailed in the Cryptoslate analysis. Analysts credit Solana's parallel execution model and stake-weighted quality-of-service (QoS) mechanisms for its resilience, even during periods of high congestion.

Comparisons with Ethereum remain a focal point. While Ethereum's upgrades aim to boost scalability, its reliance on Layer 2 solutions fragments user experience, according to Davis. Solana's simpler architecture has drawn developers and projects at a faster rate, with 7,625 new developers joining its ecosystem in 2024, as noted in the Cryptoslate analysis. Institutional investors are also favoring Solana's staking yields—currently around 7%—over Ethereum's 3%, amplifying its appeal for yield-focused portfolios, according to Yahoo Finance.

Price-wise, Solana faces critical resistance near $200. Despite holding firm above $180, a breakout could trigger a rally toward $260, while a failure to reclaim $200 risks a pullback to $158, according to a Coinpaper analysis. Meanwhile, derivatives markets signal caution, with negative funding rates of -0.17% reflecting bearish sentiment, as reported by Coinotag.

As Solana continues to outpace competitors in transaction volume and institutional adoption, its ability to sustain growth will depend on maintaining technical innovation and attracting real-world use cases. With ETF inflows, whale activity, and on-chain data all pointing to strength, the blockchain's trajectory remains a key story in the evolving crypto landscape.