Solana News Update: Institutions Favor Solana's Fast Transactions, Driving $417 Million ETF Inflows and Surpassing BTC and ETH

Solana Leads Blockchain Sector with Unprecedented $29B Weekly DEX Turnover

Solana’s blockchain has rapidly become a powerhouse in decentralized finance (DeFi), with its daily transaction count and decentralized exchange (DEX) volumes highlighting its increasing influence. Data from DefiLlama reveals that

handled close to 70 million transactions each day in October, and its DEX volume reached $143 billion for the month—equivalent to about $29 billion traded weekly, based on a . These figures have established Solana as a strong rival to and other layer-1 chains, even as discussions around scalability and institutional uptake continue to grow.

Confidence in Solana was recently reinforced by a notable whale transaction. The investor known as "2z4gKC," who had staked more than 23,000

(valued at $4.37 million) and had been inactive for ten months, returned to the market by purchasing 1.12 million $GHOST tokens for $16,700, as reported by a . Market observers interpret this move as a positive indicator, suggesting renewed enthusiasm for Solana’s ecosystem and its growth prospects.

Interest from institutional investors in Solana has also picked up, with exchange-traded funds (ETFs) playing a significant role. The Bitwise Solana ETF (BSOL) alone saw $417 million in new investments during its first week, surpassing the combined $750 million in outflows from

and Ethereum ETFs, according to a . This pattern signals a shift in investor preference toward high-performance blockchain networks. “Solana’s strong momentum highlights the attractiveness of scalable platforms as the market matures,” market analyst Lark Davis commented in .

Solana’s rising popularity has fueled debates with competitors such as Ripple. Vibhu, a manager at the Solana Foundation, challenged

supporters to compare network activity using factual data, pointing out significant differences. Solana boasts an average of 2.5 million daily active accounts, while XRP’s number has hovered around 25,000 for the past three years, according to a . Vibhu also noted that Solana’s stablecoin transfers alone totaled $2 trillion in October, far exceeding XRP’s monthly transfer volume of $50-60 billion, as detailed in a . Ripple advocates have accepted the challenge, with former executive Matt Hamilton agreeing to join a live discussion.

Solana’s technical strengths continue to reinforce its standing. Unlike Ethereum, which relies on rollups for most DeFi transactions, Solana processes all transactions on a single layer, resulting in lower costs and quicker confirmations. The network’s throughput is 1,100 transactions per second, supported by a Nakamoto Coefficient of 20 and 1,295 validators, as outlined in the Cryptoslate analysis. Experts attribute Solana’s robustness to its parallel transaction execution and stake-weighted quality-of-service (QoS) features, which help maintain performance during peak demand.

Comparisons with Ethereum remain central. While Ethereum’s upgrades are designed to enhance scalability, its dependence on Layer 2 solutions can fragment the user experience, according to Davis. Solana’s more straightforward design has attracted developers and projects at a faster pace, with 7,625 new developers joining in 2024, as reported by Cryptoslate. Institutional investors are also drawn to Solana’s staking returns—currently near 7%—which are higher than Ethereum’s 3%, making it more appealing for those seeking yield, according to

.

From a price perspective, Solana is facing significant resistance around the $200 mark. The price has remained above $180, but a successful move above $200 could spark a rally toward $260, while failing to break through may lead to a drop to $158, according to a

. Meanwhile, the derivatives market is showing caution, with negative funding rates of -0.17% indicating bearish sentiment, as noted by Coinotag.

As Solana continues to surpass its competitors in both transaction volume and institutional adoption, its long-term growth will hinge on ongoing technical progress and the ability to attract practical applications. With strong ETF inflows, significant whale activity, and robust on-chain metrics, Solana remains a focal point in the dynamic world of cryptocurrency.