Solana’s price fell 6% this Monday, settling at $156.84. The asset pulled back after approaching $172. This drop mirrored weakness in the Nasdaq index. SOL’s price recovery is being hindered by macroeconomic factors, despite strong on-chain data and the debut of its US ETFs. Tech weakness and geopolitical tensions with China impacted sentiment.
SOL has underperformed the altcoin market by 7% over the last two weeks. This is surprising, as spot Solana ETFs have attracted $343 million in net inflows since their debut on October 28. Likewise, the REX-Osprey SOL + Staking ETF accumulated an additional $286 million. The network’s metrics are robust. Active addresses increased by 10% in 30 days, and transactions rose by 8%. In contrast, Ethereum saw its active addresses fall by 5%.
Furthermore, the Solana network dominates in decentralized application (DApp) revenue, according to DefiLlama data. This sustainable competitive advantage attracts more deposits. The Total Value Locked (TVL) reached $12 billion. This figure widens the gap with BNB Chain ($8 billion). Solana’s growth also shows strong diversification into sectors like RWA and trading, moving away from its former reliance on memecoins.
Is institutional selling pressure stronger than on-chain fundamentals?
However, this optimism is being offset by institutional selling. The sale of 439,621 SOL by Galaxy Digital (GLXY) has raised concerns about the sustainability of corporate reserve strategies. Although Forward Industries (FORD) is holding its large 6.82 million SOL position steady, the risk of liquidation remains.
These sales, combined with Nasdaq’s weakness, are acting as a brake. The tech index’s drop was driven by revenue forecast cuts from companies like CoreWeave. Reports about China’s restrictions on U.S. military access to rare-earth minerals also played a role.
Solana’s fundamentals remain strong. But SOL’s price recovery toward the $250 target depends on external factors. Confidence in the tech markets must be renewed. Geopolitical risks also need to ease. Investors are watching whether large corporate treasuries holding SOL will liquidate more assets, which could delay the rally.
