Solana (SOL) Stumbles Despite U.S. Staking ETF Hype—What’s Next for the Crypto Darling?

Solana’s SOL token takes a hit as the much-hyped U.S. staking ETF fails to deliver a price surge. Is this a temporary dip or a sign of deeper fatigue in the crypto markets?

The ETF Letdown

Wall Street’s latest crypto gambit—a staking-focused ETF—was supposed to ignite Solana’s rally. Instead, SOL slid, leaving traders questioning whether institutional products can ever match crypto’s organic volatility (or fun).

Market Realities Bite

No amount of financial engineering could mask the sell-off. Solana’s ecosystem remains robust, but price action suggests even the brightest protocols aren’t immune to trader whims—or the occasional reality check from traditional finance.

What’s Next for SOL?

If history’s any guide, this dip might just be another buying opportunity. Or, as cynics would say: another reminder that ETFs are just Wall Street’s way of selling blockchain back to crypto natives—at a markup.

TLDR

• SOL fell 7.84% to $145.08 in 24 hours despite REX-Osprey staking ETF launching July 2
• New ETF will be first U.S. fund offering direct SOL exposure plus staking rewards
• Solana wallet addresses holding 0.1+ SOL reached all-time high of 11.44 million
• Futures trading volume surged 88.74% to $20.24 billion showing institutional interest
• Technical analysis suggests potential rally to $184 if key support levels hold

Solana’s native token SOL dropped 7.84% to $145.08 on July 1, 2025, despite the upcoming launch of the first U.S.-based solana staking ETF. The decline came just one day before the REX-Osprey SOL + Staking ETF begins trading on July 2.

The new ETF will trade under ticker SSK and marks a first for U.S. investors. Unlike traditional crypto ETFs that only track price movements, this fund offers direct exposure to SOL while providing access to staking rewards.

The fund will allocate approximately 80% of its assets to SOL tokens. About 50% of those holdings will be actively staked to generate yield for investors. This structure allows ETF holders to benefit from Solana’s proof-of-stake reward system.

The ETF operates under the Investment Company Act of 1940 rather than the 1933 Act. This regulatory framework typically provides better investor protections and may speed up approval processes for similar products.

Financial institutions view this launch as important for Solana’s institutional credibility. The yield-generating feature offers more comprehensive exposure compared to spot-tracking funds. Grayscale, VanEck, and Bitwise have filed applications for similar SOL ETF products.

Strong Network Growth Despite Price Drop

Despite the price decline, Solana network activity reached new heights. The number of addresses holding at least 0.1 SOL hit an all-time high of 11.44 million on June 28. This milestone coincided with SOL’s price reaching $150.76.

The number of wallets holding over 0.1 Solana $SOL has hit a new all-time high, surpassing 11.44 million! pic.twitter.com/nVnaFOqVM5

— Ali (@ali_charts) July 1, 2025

The surge in small-holder activity indicates growing grassroots confidence in the network. Spot netflow data shows sustained outflows from centralized exchanges totaling $525.32 million as of July 1.

These outflows suggest investors are moving SOL to private wallets for long-term holding. Continued outflows could create a supply squeeze where demand exceeds available supply on exchanges.

Futures Market Shows Bullish Sentiment

Derivatives markets displayed strong bullish activity despite the price drop. Futures trading volume jumped 88.74% to $20.24 billion over the 24-hour period. Futures open interest climbed 4.14% to $7.22 billion.

Options markets also saw increased activity. Options volume ROSE 37.27% while options open interest increased 17.76%. Rising open interest across both derivative types indicates expanding market participation.

The Taker Buy/Sell Ratio confirmed dominant buying activity with readings above 1.0. Binance showed particularly strong buying pressure with a ratio of 1.9842. OKX displayed even higher bullish sentiment at 2.16.

Technical analysis reveals SOL trading within a bullish triangle pattern in the short term. The token has breached immediate resistance levels and appears positioned for a potential breakout.

Key support levels sit at $144.87 and $139.88. If price bounces from these levels, analysts project a potential MOVE to $184.88, representing a 27% upside from current levels.

Technical Outlook Points Higher

Medium-term analysis shows SOL trading within a similar bullish structure with higher price targets. The token faces resistance at a descending trend line but has not yet broken through.

A successful breakout above this resistance could send SOL to three key targets. The first target sits at $181.46, followed by $203.98 and $244.00.

During Monday’s trading session, SOL encountered strong resistance at $157.42 in the first hour. The largest volume spike occurred at 06:00 UTC with over 1.57 million units traded.

Support emerged at $146.55 during the 14:00 UTC hour with elevated volume suggesting accumulation. The token hit its daily low of $145.08 in the final hour of trading from 19:01 to 20:00 UTC.