Solana Soars to 3× TVL on $417M ETF Inflows, Traders Cautious
Solana is trading at over three times its $40 billion TVL, driven by a record $417 million inflow into Bitwise’s BSOL ETF in its debut week. Despite negative funding rates (around –0.17%) and falling futures open interest signaling bearish derivatives sentiment, Solana has held a $180–$195 range as spot buyers absorb selling pressure. On-chain metrics show TVL growth from stablecoins, liquid staking, DEX volume and real-world assets, but Solana’s FDV/TVL multiple has diverged. Technical indicators—RSI at ~44 and slightly negative Chaikin Money Flow—point to caution. Analysts warn that a shift to neutral funding could trigger renewed altcoin volatility. Traders should monitor ETF flows, funding rates and TVL trends for potential short-term rebounds and long-term DeFi growth.
Neutral
Solana’s price resilience within the $180–$195 band, supported by $417 million inflows into the BSOL ETF, underpins a neutral outlook. In the short term, spot demand has absorbed bearish pressure from negative funding rates (–0.17%) and falling futures open interest, limiting sharp downturns but constraining upside until derivatives sentiment improves. On-chain fundamentals remain solid—TVL expansion via stablecoins, liquid staking and DEX activity—but Solana’s FDV/TVL divergence suggests valuation risk if ETF inflows slow. Over the longer term, renewed volatility may emerge if funding rates normalize, but sustained institutional adoption and DeFi growth could offer bullish support. Traders should thus adopt a cautious stance, balancing potential rebounds with fundamental mispricings.