Solana TVL Hits All-Time High as SOL ETFs Defy Bearish Sentiment With 3 Consecutive Weeks of Inflows ⋆ ZyCrypto

Solana (SOL) has dropped by 35% over the last week, but network metrics suggest that if demand returns, a massive rebound could follow. On-chain data shows that the Total Value Locked (TVL) has risen to record highs, while SOL spot exchange-traded funds (ETFs) have recorded three consecutive weeks of inflows despite bearish sentiment across the broader market.

Solana Network TVL Hits Record Highs

Data from DeFiLlama shows that the TVL on Solana has risen to 80.27 million SOL. This marks the second time in history that the TVL has risen past 80 million, suggesting that a significant number of SOL tokens are being locked on the network. 

The surging TVL is bullish for Solana because it reduces the number of tokens available for sale on exchanges. Therefore, if the demand returns now, the price of Solana will likely rise fast. 

However, given the recent drop in SOL’s price, the TVL in USD terms has fallen to $6.24 billion. This is notably lower than the $51 billion TVL on the Ethereum network, but higher than BNB Chain’s $5.37 billion. Solana ranks second among networks by TVL. 

It is important to note that Solana has been leading the decentralized exchange (DEX) space for months. At press time, Solana accounted for 60% of all DEX volumes, per DeFiLlama, notably higher than Ethereum’s 38%. 

SOL ETFs Record Three Consecutive Weeks of Inflows

Data from SoSoValue shows that institutional interest in Solana remains high despite the broader market pullback caused by surging selling pressure. For the last three consecutive weeks, SOL ETFs have recorded inflows, making it the only ETF on Wall Street to do so. 

In contrast, Bitcoin and Ethereum ETFs have been recording outflows for several weeks. This week alone, BTC ETFs have posted over $203 million in outflows after six consecutive weeks of outflows. On the other hand, ETH ETFs have also recorded six consecutive weeks of negative data.

Data from CoinShares also supports the bullish outlook of rising institutional interest in Solana. In its latest report, CoinShares revealed that SOL products received $3.3 million in inflows last week. SOL and XRP were the only crypto assets that saw inflows during the week. 

The divergence between Solana and the other crypto ETFs suggests that institutions may be buying the dip in SOL. At press time, Solana was trading at $78, up 0.06% intraday.