Solana dropped sharply by 8%, wiping out all its year-over-year gains, as the newly launched spot Solana ETFs in the United States failed to drive any positive market reaction. The token fell below $180, marking a complete retracement of its 2025 gains and highlighting fading enthusiasm among institutional investors.
The Bitwise Solana Staking ETF recorded inflows of about $116 million, while the Grayscale Solana Trust saw modest activity with $1.4 million in conversions. Despite this, selling pressure dominated as the broader crypto market turned risk-averse following hawkish signals from the Federal Reserve.
Adding to the concerns, on-chain data revealed that Jump Crypto transferred more than 1.1 million SOL, valued at over $200 million, to Galaxy Digital, in exchange for approximately 2,455 BTC worth $265 million. The transaction hinted that major holders might be rotating away from SOL and toward Bitcoin amid heightened market uncertainty.
Technically, SOL faces a critical support zone near $175. A confirmed breakdown below this level could open further downside potential toward the $160 area. With sentiment weakening and ETF enthusiasm fading, Solana may remain under pressure in the short term until clear institutional buying returns.
