Solana Whales Stake $220 Million Despite SEC Halt on DeFi Development

Solana whales have staked a significant amount of $220 million in SOL despite the recent halt in fundraising efforts by DeFi Development Corp. due to regulatory issues. The U.S. Securities and Exchange Commission (SEC) stopped DeFi Development's $1 billion fundraising effort, citing a missing internal controls report in the company’s financial disclosure. This regulatory action led to the withdrawal of the Nasdaq filing by DeFi Development, which had aimed to use the funds primarily for Solana token acquisitions.

Following the news, Solana's price dropped by 4.05% to $159.40. However, blockchain activity revealed countervailing patterns, with two new wallets withdrawing 1,348,741 SOL ($219.99 million) from Coinbase Prime on June 12th. The entirety of these funds went into staking contracts, indicating long-term positioning despite regulatory uncertainty. This movement suggests that some investors are maintaining a bullish outlook on Solana, despite the recent regulatory setbacks.

Exchange data further shows $21.82 million in SOL outflows during the past 24 hours, which could be interpreted as a sign of increased investor caution. However, the overall sentiment among active speculators remains bullish, with Binance’s Long/Short Ratio reaching 2.40 and 70.61% of traders holding long positions. Technically, Solana faces a critical test at the $156 support level. Holding this level could enable a 16% rebound toward $184, while failure may trigger extended losses.

Despite the regulatory challenges, Solana (SOL) has shown a +4.74% gain over the last 24 hours, marking its sixth consecutive day of gains. This bullish momentum has pushed SOL above its 50-day simple moving average (SMA) at $161, setting up a potential run toward $200, provided it can also break through its 200-day SMA at $175. The rally comes amid growing speculation around the approval of a spot Solana ETF, with analysts assigning a 90% probability of approval by late 2025. The U.S. SEC is actively reviewing proposals and is expected to comment within 30 days. This narrative is helping fuel both institutional interest and retail enthusiasm, positioning SOL as a frontrunner among altcoins for the next major breakout.

In summary, despite the SEC's halt on DeFi Development's fundraising efforts, Solana whales have continued to stake significant amounts in SOL, indicating long-term confidence in the cryptocurrency. The regulatory setback has not derailed the price action, and the overall sentiment among active speculators remains bullish. However, the regulatory challenges highlight the need for compliance and internal controls in the cryptocurrency space, which could impact future institutional exposure to SOL. The potential approval of a spot Solana ETF and the growing institutional interest position SOL as a frontrunner among altcoins for the next major breakout.