Solana (SOL) capital inflow is surging against the trend! Weekly capital inflow exceeds 400 million USD, with cross-chain funds and institutional ETFs becoming the dual engines, on-chain revenue has topped the charts for 22 consecutive weeks.

Despite the overall pullback in the cryptocurrency market (total market capitalization down 3.56%), the Solana (SOL) ecosystem has shown remarkable resilience, recording over $400 million in net capital inflow over the past week, becoming a safe haven for capital against the trend. The core driving forces come from two aspects: institutional funds aggressively positioning through Solana ETF/ETP products (REX-Osprey saw inflows of $176.7 million in a single week), and cross-chain funds continuously migrating to Solana (with $230 million in cross-chain inflows, 62% coming from Ethereum). The surge in on-chain activity has driven Solana network revenue to soar, with total dApp revenue reaching $35 million in a week, led by Pumpfun with $10 million. Whale funds are shifting towards meme coin trading in the Solana ecosystem, coupled with Circle’s issuance of $1.25 billion in USDC stablecoins, together forming a third pole of capital inflow. Although SOL’s price fell 6% in 24 hours, the weekly trend remains upward, with on-chain data suggesting that a new wave of rise may be brewing.

Analysis of Capital Inflow: Driven by Institutional Products + Cross-Chain Migration

• Institutional products lead: The REX-Osprey Solana ETP (SSK) has performed particularly well, with a weekly inflow of $176.7 million, accumulating a total of $199 million in the past month, and surpassing $1 billion in total inflows year-to-date. Its weekly inflow scale is only second to Bitcoin ($5.52 billion) and Ethereum ($2.87 billion) related products.
• Cross-chain capital inflow: In the past week, assets worth $230 million have entered the Solana ecosystem through cross-chain bridges. Among them:
  • Ethereum (ETH) is the largest source: contributing about 126 million USD (accounting for 62%)
  • Arbitrum (ARB): transferred 56 million USD
  • Base Chain: Outflow of 20 million USD
  • Polygon (POL), Avalanche (AVAX), Sui (SUI) and other chains contributed less than 10 million dollars.
• The total assets under management (AUM) on the Solana chain currently reach 2.84 billion USD.

On-chain activity surges: Revenue leads public chains for 22 consecutive weeks

• dApp revenue explosion: The total weekly revenue of decentralized applications (dApp) based on Solana reached 35 million USD. Among them:
  • The meme coin minting platform Pumpfun has topped the chart with $10 million in revenue.
  • Other contributors include Jupiter (JUP), Raydium (RAY), LetsBONKfun, etc.
• Income king status solid: According to Solana Floor data, Solana has ranked first in blockchain network revenue for 22 consecutive weeks, surpassing Ethereum and Bitcoin.
• Significant increase in stablecoin issuance: Circle has issued over 1.25 billion USDC on Solana, pushing the total supply of stablecoins on the network to 24 billion USD, reflecting strong on-chain capital demand.

Market Dynamics and Whale Behavior

• Whales Shift to Meme Coins: In the past 7 days, “Smart Money” has shown significant gains in the trading of Meme coins within the Solana ecosystem. Although Solana Meme coins are generally in a pullback phase, whale funds are rotating into these high-volatility assets in search of opportunities.
• Price performance divergence: SOL price fell 6% within 24 hours, but the weekly trend remains upward. On-chain daily trading volume reached $5.84 billion, a significant increase of 58%, indicating that market activity has not diminished.

Controversies and Prospects

Despite the ongoing controversy surrounding Solana due to the heavy control of venture capital (VC) firms, the current influx of funds is built on multiple solid foundations, including the compliance of institutional products, cross-chain asset migration, the issuance of stablecoins, and revenue generation from ecological applications. While it is necessary to be cautious of short-term trading trap risks, on-chain data and capital flows indicate that Solana’s fundamentals are strong, and the market’s bullish expectations are high, which may accumulate energy for the next price breakout.

Conclusion

Solana’s capital siphoning effect in a declining market highlights its dual appeal as the “darling of institutions” and a “hub of ecological innovation.” The ongoing increase in institutional ETF/ETP investments, the large-scale migration of cross-chain funds, and the strong performance of dApp revenues together construct a moat for the SOL ecosystem. The activity of Whales in the Meme coin sector and the issuance of stablecoins inject liquidity vitality into the ecosystem. Despite facing skepticism led by VCs, if Solana can maintain the current influx of capital and solidify its position as the revenue leader among public chains, it may only be a matter of time before the SOL price breaks past previous highs. Investors need to closely monitor the trends in cross-chain capital flows, the speed of institutional product inflows, and the performance of core dApp revenues to capture signals for the next wave of market movements.