Solana News Today: Solana's Attractive Staking Returns Fuel ETF Growth, Yet Market Fluctuations Pose Risks to Progress

Solana has rapidly established itself as a powerhouse in decentralized finance (DeFi), thanks to a blend of institutional backing, attractive staking rewards, and transaction speeds that surpass many rivals. Handling 70 million transactions daily and processing $143 billion in volume, Solana has emerged as a leader in throughput, often being compared to

while utilizing its advanced infrastructure to draw in investment. The introduction of the first U.S. spot-based ETFs, along with strategic initiatives from major entities such as and Jump Crypto, highlights the blockchain’s expanding role in the digital asset landscape, according to .

Bitwise’s Solana Staking ETF (BSOL), which debuted on October 28, 2025, recorded $55.4 million in trading volume on its first day and climbed to $72.4 million by the second day, based on Farside Investors data. This surge was further supported by Western Union’s plan to launch a Solana-powered stablecoin, the USD Payment Token (USDPT), expected in early 2026. The stablecoin is designed to connect conventional fiat systems with blockchain technology, taking advantage of Solana’s speed and efficiency to improve international payments. Meanwhile, a prominent whale investor purchased 501,775

(valued at $99.65 million), reflecting strong belief in Solana’s future prospects.

Institutions are drawn to Solana due to its compelling staking returns and impressive growth. Over 81% of SOL tokens—worth $51 billion—are currently staked, offering an annual yield of about 7%, which is more than double Ethereum’s 3%, according to

. While Ethereum holds $12 billion in total value locked (TVL) in real-world assets, Solana’s TVL has soared by more than 300% in 2025, far exceeding Ethereum’s 50% growth. Analysts such as Hougan from DL News suggest that Solana’s smaller market capitalization ($107 billion) compared to Ethereum’s $480 billion presents greater growth opportunities, making it appealing for institutions seeking higher yields.

Despite these positives, Solana’s price has experienced significant swings. On October 30, 2025, its value dropped to $182—a nearly 6% decline in a single day—after

reported that Jump Crypto exchanged $205 million in SOL for $265 million in . This transaction, identified by on-chain analyst Lookonchain, sparked a wider selloff, resulting in over $72 million in SOL liquidations within 24 hours, as noted by . The price drop wiped out Solana’s gains for the year, leaving it down 4% for 2025, even after the ETF launches, according to .

This market response underscores the fragile balance between optimism and caution. The Grayscale Solana Trust (GSOL) attracted $1.4 million in new investments following its ETF conversion, while Bitwise’s BSOL saw $116 million in net inflows during its first two days. Nevertheless, the ETFs have had a limited effect on price, with Solana falling 12% from its post-launch peak, highlighting the difficulty of converting institutional enthusiasm into lasting upward momentum.

Looking forward, institutional demand for Solana’s high-yield offerings may continue to fuel adoption, especially as innovative products like Rex-Osprey’s hybrid ETFs—which blend direct SOL holdings with staking rewards—gain popularity, as mentioned in

. However, Ethereum’s established dominance in DeFi and its robust staking ecosystem remain significant challenges. Maria Carola of StealthEX points out that Solana’s continued success will depend on sustaining its DeFi growth and network reliability from 2024, with projections of $3 billion in ETF inflows over the next 18 months hinging on these factors.