Solana sees robust on-chain inflows, with growing demand for ETP and ETF

Solana sees a mix of on-chain and mainstream inflows, as the network aims to tap into mainstream finance in addition to meme activity. SOL invited inflows from digital asset products, with a record day for ETF and ETP. 

Solana invites increasing inflows, both from on-chain natives and from the buyers of digital asset products. Solana remains in the top 3 for netflows, recently showing accelerated transfers from Ethereum. 

For the past week, Solana saw more than $40M in netflows, of which over $33M came from Ethereum. Based on Wormhole data, Solana mostly receives WETH and WBTC, some of the tokens widely used as DeFi collaterals. 

On a smaller scale, Solana also invited whale inflows in some of its most established stablecoins, including BONK and FARTCOIN. Solana meme tokens as a whole invited highly active trading, with a market cap above $12B. 

Solana expanded to all DeFi sectors

Solana’s total value locked grows daily to over $12.76B. Some of it is based on the growth of SOL, in addition to inflows of valuable tokens. Solana was also the chain with the biggest inflow of stablecoins, with $255M added in the past day, based on Artemis data.

Solana achieved robust daily inflows, with most coming from the Ethereum chain. | Source: Artemis

The Solana ecosystem is currently growing based on several factors. Meme space is booming, as Cryptopolitan reported earlier, with increased demand for lending. Liquid staking tokens are also adding to the growth, based on the expansion of Solana treasury companies. 

The recent growth is part of Solana’s drive to become the everything chain, hosting traditional finance, RWA, tokenized stocks, and its native tokens and platforms. 

Solana digital asset products mark record day

Solana’s digital asset products are still relatively new compared to BTC and ETH. However, last Friday, existing ETFs and ETPs saw their biggest daily inflow. 

Based on CoinShares research, $145M flowed into Solana products, with a total of $198M for the whole week. So far, Solana-based products have absorbed $4.1B, following 14 consecutive weeks of inflows. 

Recently, Solana has shown multiple favorable factors, especially its economic activity based on app revenues. Additionally, Solana has already completed most of its significant cliff unlocks, with no risk of selling pressure. Instead, more SOL is absorbed by whales for treasuries or liquid staking. 

SOL is closely watched for breaking above the $250 level, which sets expectations of a new rally to all-time highs and eventually a period of price discovery. Based on the liquidation heatmap, SOL has accumulated short positions above $250, suggesting a short squeeze may boost the price action. 

Short-term price drops also result in buying, as traders have set up buy walls to absorb any tokens at a lower price.

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