Solana’s Institutional Surge: A Bullish Divergence Amid Price Weakness

Despite a recent price slump, solana (SOL) is experiencing a powerful and sustained wave of institutional investment, signaling a profound divergence between short-term market sentiment and long-term conviction. While SOL's price has retreated to around $127, shedding 4% in an hour and 7% over the week amid broader market uncertainty, the capital flows into Solana-focused Exchange-Traded Funds (ETFs) paint a starkly different and highly bullish picture. On December 9, 2025, these institutional vehicles saw a massive single-day inflow of $16.6 million, marking the second-largest haul of the month. More significantly, this event contributed to an impressive seven-day inflow streak that has amassed a total of $674 million, according to data from Farside Investors. This torrent of capital, occurring even as the Federal Reserve's recent 25 basis point rate cut failed to ignite sustained bullish momentum across crypto markets, underscores a critical narrative: sophisticated investors are using periods of price weakness to build substantial, strategic positions. The institutional embrace suggests a deep-seated belief in Solana's underlying technology, ecosystem growth, and long-term value proposition, transcending the immediate concerns over macroeconomic headwinds like fewer projected rate cuts in 2026. This divergence—where price action and institutional flow move in opposite directions—is a classic hallmark of accumulating phases often observed before significant bullish reversals. It indicates that while retail traders and algorithmic systems may be reacting to short-term volatility and macro fears, large-scale allocators are executing a calculated, forward-looking strategy. The scale and consistency of these ETF inflows provide a formidable foundation of demand that could ultimately absorb selling pressure and catalyze the next major price advance. As of mid-December 2025, this dynamic positions Solana not as a casualty of market weakness, but as a primary beneficiary of institutional capital rotation into high-conviction digital assets, setting the stage for a potentially powerful rally once broader market sentiment stabilizes.

Solana ETF Inflows Defy Price Slump as Institutional Interest Grows

Solana's price dipped 4% in the past hour to $127, extending a 7% weekly loss amid broader market weakness. The Fed's 25bps rate cut failed to sustain momentum, with traders wary of fewer projected cuts in 2026.

Yet institutional flows tell a different story. SOL-focused ETFs saw $16.6 million inflows on December 9—the second-largest single-day haul this month. The 7-day inflow streak totaled $674 million, per Farside Investors data. 'Price is weak. Institutional demand isn’t,' observed one market commentator.

The divergence suggests accumulating smart money positions despite retail skittishness. Solana’s ecosystem growth and high-throughput blockchain continue attracting long-term believers, even as short-term traders retreat from crypto’s volatility.

Solana Withstands Historic 6 Tbps DDoS Attack Without Network Disruption

Solana weathered one of the largest distributed denial-of-service attacks in internet history, peaking at 6 terabits per second—a traffic volume comparable to assaults on Google Cloud and AWS. The blockchain processed transactions normally throughout the week-long attack, maintaining sub-second confirmations and stable slot latency.

The incident marks a rare case of a public blockchain enduring record-scale DDoS traffic traditionally aimed at centralized infrastructure providers. Validators and Core infrastructure absorbed the load without performance degradation, demonstrating Solana’s architectural maturation under extreme stress.

Solana Endures Massive DDoS Attack While Maintaining Network Functionality

Solana faced one of the largest distributed denial-of-service (DDoS) attacks in internet history last week, peaking at 6 terabits per second. Despite the onslaught, the network's applications continued operating without noticeable disruption—a testament to its robust engineering.

The attack, which persisted for several days with sustained spam traffic, ranks as the fourth-largest globally in 2025. CloudFlare's reported 7.3 Tbps attack in June remains the year's biggest. Solana's resilience contrasts with competing chain Sui, which experienced delayed block production during a similar assault.

Industry observers highlight the significance of Solana's uninterrupted performance. "The fact you haven't experienced [disruption] shows the level of engineering here," remarked Mert from Helius.dev. While such attacks can overload node infrastructure, they cannot compromise blockchain ledgers themselves.

Class Action Lawsuit Against Pump.fun and Solana Advances with New Evidence

A federal judge has greenlit an amended complaint in the class action lawsuit targeting Pump.fun and Solana, marking a pivotal turn in the case. Plaintiffs allege newly obtained chat logs reveal systemic manipulation of the token launch platform.

The lawsuit, covering investors who suffered losses on Pump.fun-launched tokens since March 2024, now includes explosive claims ranging from securities violations to RICO offenses. Court documents suggest the platform allegedly privileged insiders with access to Solana infrastructure and Jito Labs' transaction tools.

Defendants' attempts to dismiss the case on procedural grounds were overruled. The court granted plaintiffs until October to incorporate evidence from a confidential informant claiming to possess 5,000 incriminating messages.