Solana (SOL) experienced a sharp drop this Thursday, October 30. The digital asset lost 8% of its value, erasing all accumulated gains from the past year. This move coincides with the expected launch of the first spot Solana ETFs in the United States. The Solana price after ETF debut disappointed investors. Market analysts, such as QCP Capital, noted the weakness in initial demand.
Today’s trading session was not positive for SOL. The asset started the day trading near $150 USD. However, selling pressure dragged the price down to $138 USD in the early trading hours. This slump represents a significant 8% correction in just 24 hours. The launch of the spot exchange-traded funds (ETFs) was highly anticipated by the community. Nonetheless, inflow streams on the first day were weaker than projected by market consensus.
Furthermore, the market had anticipated this event for months. It was expected that the approval of the ETFs would replicate the success seen with Bitcoin earlier in the year. The crypto community expected a new wave of institutional capital. However, sentiment appears to have soured quickly. This event demonstrates a classic “buy the rumor, sell the news” scenario. Investors who had accumulated SOL in anticipation of the announcement liquidated their positions upon confirmation.
Is This the End of Solana’s Rally?
On the other hand, SOL’s fall contrasts sharply with the stability of the general market. Large-cap assets like Bitcoin and Ethereum held their positions. This suggests the sell-off was specific to Solana and not widespread panic. Confidence in the Solana blockchain remains high for the long term. But in the short term, investors who were betting on the ETF are taking profits. The Solana price after ETF debut is now creating uncertainty.
Solana’s volatility erased 12 months of appreciation in a single day. The market now watches the sustainability of these ETFs. It will be crucial to monitor capital flows in the coming days. This will determine if the drop was a temporary and healthy correction. Or if, conversely, it marks the beginning of a deeper bearish trend for the Solana price after ETF debut.
