Solana News Today: Solana ETFs Attract $90M as Price Dips 20%: Inflow-Price Paradox Deepens

Solana ETF inflows have surged to unprecedented levels, with institutions redirecting capital from Bitcoin and Ethereum to the high-performance blockchain, even as technical indicators suggest a bearish outlook for the token's price. According to a Coinotag report, Solana ETFs attracted $89.9 million in inflows last week, surpassing Bitcoin's $16.2 million and Ethereum's $57.6 million. This shift underscores growing institutional confidence in Solana's scalable infrastructure, which processes up to 65,000 transactions per second, outpacing competitors in speed and cost efficiency.

The Bitwise Solana ETF (BSOL) led the charge, recording $417 million in inflows during its first trading week, according to a BeInCrypto report. The fund's debut ranked it among the top 20 ETFs globally by net inflows, outperforming even Bitcoin-focused products like BlackRock's iShares Bitcoin Trust (IBIT), which saw $254 million in outflows. Meanwhile, Grayscale's Solana ETF added $4.9 million to the inflow total, according to a Coinotag article. These figures highlight a broader reallocation of capital toward altcoins, driven by Solana's expanding role in stablecoin transfers and tokenized assets.

Despite the inflows, Solana's price has struggled. The token traded at $159 at press time, down nearly 20% from its levels a week earlier. Technical indicators reinforce the bearish narrative: the 50-day exponential moving average (EMA) remains above the current price, and the Relative Strength Index (RSI) hovers near oversold territory at 30. Chaikin Money Flow (CMF) also remains negative, signaling sustained selling pressure in the spot market. On-chain metrics add complexity to the picture. Solana's Total Value Locked (TVL) stands at $10.59 billion, down 3% in 24 hours, suggesting that ETF capital is entering faster than on-chain activity can absorb.

The divergence between ETF inflows and price action reflects a key theme in the crypto market: institutional accumulation versus retail sentiment. While large investors are positioning for long-term growth, retail demand has cooled, with exchange inflows hitting 15 million SOL over the week. Solana founder Anatoly Yakovenko has urged developers to focus on product innovation rather than short-term price movements, emphasizing the blockchain's utility in real-world applications like Western Union's upcoming Solana-based stablecoin.

Market participants are watching for potential turning points. A rebound in the RSI could trigger a short-term bounce, but sustained recovery will depend on macroeconomic factors, including the Federal Reserve's monetary policy and Bitcoin's trajectory. The Solana ecosystem, however, shows resilience: over 1,000 DeFi projects operate on the network, and staking participation remains at 70% of the circulating supply. Analysts like Chris Burniske argue that Solana's ETF momentum signals a bridge between traditional finance and DeFi, with its low fees and high throughput making it ideal for institutional-grade use cases.

If the current bearish technical setup persists, Solana could test support at $150, a level that has historically prevented further declines. A sustained break below this threshold could see the price approach $120, aligning with broader market sentiment and macroeconomic headwinds. For now, the ETF inflows provide a bullish undercurrent, suggesting that institutional confidence in Solana's long-term potential remains intact.