The launch of a Solana exchange-traded fund (ETF) via a partnership between REX Shares and Osprey Funds triggered a short-term price increase for SOL, lifting the token approximately 7%.
Despite this initial uptake, analysts report that weak institutional demand combined with significant token unlocks and competitive headwinds are severely limiting the ETF’s impact on SOL’s sustained price appreciation.
The lackluster institutional appetite is starkly evident in Grayscale’s Solana Trust (GSOL), which manages assets totaling approximately $75 million, standing in sharp contrast to its Ethereum Trust managing $10 billion.
Significant near-term selling pressure looms as an estimated $585 million worth of SOL becomes unlocked from staking within the next two months.
Further compounding the downward pressure, prominent decentralized applications operating on Solana, such as Pump, have been observed transferring substantial SOL holdings to exchanges. Reported transfers exceed $404 million, indicating potential liquidation intent.
Solana’s fundamental metrics also signal weakness. Network revenue has declined sharply by over 90%. At the same time, the ecosystem faces intensified competitive pressure from established players including Ethereum and Binance Coin.