Solana at a Crossroads: Retail Enthusiasm Meets On-Chain Reality
Solana (SOL) is currently testing critical support levels amidst declining user activity, presenting a market at a crossroads. Retail traders have shown significant enthusiasm, with long positions crowding at the 91st percentile, starkly contrasting Ethereum's 28th percentile. However, this Optimism clashes with on-chain data revealing a 16% drop in daily active addresses this week. SOL has also surrendered nearly half of its July gains, sliding from $206 to $180. Despite these challenges, Solana's DeFi ecosystem continues to demonstrate resilience, hinting at potential underlying strength. As of August 2025, the market watches closely to see if Solana can rebound or if further declines are imminent.
Solana (SOL) Price Tests Critical Support Amid Declining User Activity
Solana's price action reveals a market at crossroads. Retail traders have piled into long positions, with crowding reaching the 91st percentile—a stark contrast to Ethereum's 28th percentile positioning. This enthusiasm clashes with on-chain reality: daily active addresses dropped 16% this week while SOL surrendered nearly half its July gains, sliding from $206 to $180.
The network's DeFi ecosystem shows resilience despite price weakness. Total value locked climbed 14% to $9.85 billion in July, with DEX volumes surging 30% to $82 billion. Such fundamentals now face a technical test as SOL hovers above the $178 support level, where $11 million in Leveraged positions await resolution.
Market mechanics hint at brewing volatility. The funding rate flip from -0.16% to slightly positive suggests shifting sentiment, while $183.30 emerges as a key liquidity zone. Traders unwound 80% of long-side exposure in 24 hours—a cleansing that could precede the next directional move.
Visa Expands Stablecoin Support and Blockchain Settlement Options
Visa has broadened its stablecoin payment infrastructure by adding support for PYUSD, USDG, and EURC, signaling a strategic push into digital currency integration. The payments giant also extended its on-chain settlement capabilities beyond Ethereum and Solana to include Stellar and Avalanche networks, enhancing transaction speed and cross-chain flexibility.
The MOVE underscores Visa's deliberate pivot toward blockchain-based financial infrastructure. By diversifying supported stablecoins and blockchain networks, the company is positioning itself at the intersection of traditional finance and digital asset innovation. This development follows growing institutional demand for multi-chain settlement solutions that combine regulatory compliance with blockchain efficiency.
Crypto Trader Opens $42.5M Solana Long Position on Hyperdash
An anonymous trader, identified by wallet address 0x89Da, has placed a $42.3 million long position on solana (SOL), equivalent to 238,909 tokens. The move comes amid a surge in SOL's price, currently trading at $177.60—a 9.63% gain since entry at $176.237. The trader now holds $409,245 in unrealized profits.
This isn't the first bold bet from 0x89Da. Over the past 20 days, the trader has executed 14 trades with an 86% win rate, racking up $2.9 million in profits. The track record suggests calculated aggression rather than reckless speculation.
Solana's market activity mirrors the trader's confidence. Trading volume jumped 15% to $5.83 billion, with its market cap holding steady at $95.63 billion. The rally wasn't painless—$31.55 million in positions were liquidated across the market.
Grayscale and VanEck Advance Solana ETF Preparations with Updated SEC Filings
Grayscale Investments and VanEck have taken decisive steps toward launching Solana-based exchange-traded funds, submitting amended S-1 registration statements to the SEC. The filings reveal a 2.5% sponsor fee for Grayscale's proposed GSOL product, aligning with industry benchmarks for digital asset funds.
Coinbase Custody will safeguard the underlying SOL tokens, leveraging its institutional-grade security infrastructure. The cash-creation model detailed in Grayscale's filing requires investors to deposit USD rather than crypto assets—a structure that may ease regulatory concerns.
Market observers note the enhanced transparency in these updated documents could accelerate SEC approval timelines. While Grayscale's fee exceeds typical passive ETF charges, the premium reflects active management costs in the nascent crypto ETF space.
