Solana’s Contradiction: Institutional Accumulation Amidst Price Decline

As 2025 draws to a close, the Solana blockchain finds itself in a curious position. Its native token has experienced a significant correction from its January peak, yet major financial institutions are concurrently expanding their exposure to the ecosystem. This divergence between a weakening price chart and strengthening fundamental interest presents a critical question for investors: is the current slump a buying opportunity or a precursor to further losses?

Despite the bearish price action, substantial capital continues to enter Solana-focused investment vehicles. Solana ETFs recently recorded inflows of approximately $69 million. The fundamental case for the network is being bolstered by strategic moves from traditional finance titans. Visa has outlined plans to settle billions in transaction volume using the Solana blockchain, while JPMorgan is advancing its tokenization initiatives on the platform. Furthermore, analysts from Bloomberg Intelligence assess the probability of additional ETF approvals by year-end as very high.

Technical Picture Remains Under Pressure

The selling pressure has persisted through the final trading week of the year. Currently trading around $125, SOL sits far below its yearly high of nearly $294. Key technical indicators reflect continued bearish sentiment; the Relative Strength Index (RSI), hovering near 40, suggests selling interest still dominates. Market technicians have identified the $90 to $100 zone as a potential support area should the immediate level fail. For the start of 2026, defending the $116 support is viewed as crucial. A decisive break below this threshold could open a path toward $90, whereas a reclaim of the $126 level on high volume would be needed to signal a potential trend reversal.

Should investors sell immediately? Or is it worth buying Solana?

Memecoin Collapse Drains Network Revenue

A primary driver behind the network's declining revenue is the evaporated interest in speculative memecoins. Activity in this sector has plummeted by almost 97% since its peak in late 2024. This downturn has directly impacted protocol income, which fell from $2.5 billion to roughly $502 million. The network now faces the challenge of demonstrating a successful transition from speculative hype to sustainable revenue models, including decentralized finance (DeFi) and real-world asset (RWA) tokenization.

Looking ahead, the planned "Alpenglow" upgrade and the continued integration of tokenized assets are set to shift focus toward technical scalability and direct competition with networks like Ethereum in the coming year.