Solana Faces Midterm Selling Pressure as ETF Outflows Mount
Key Summary
Solana shed 20% in thirty days as U.S. spot SOL ETFs recorded $71.48M in outflows across five trading sessions. Data from Artemis shows network revenue dropped from $1.30M to $442,000 while daily transactions fell to 120,000,000. Crypto analyst Joao Wedson pointed to historical midterm election cycles warning of prolonged underperformance, with liquidation heatmaps mapping an open drop toward the $73 price floor.
Key Bullets
- Spot SOL exchange-traded funds recorded $71.48M in net capital outflows across the last five trading days according to U.S. fund flow reports.
- Network revenue on Solana dropped from $1.30M down to $442,000 as daily transaction counts contracted to 120,000,000 across the protocol.
- Liquidation heatmaps monitored by market researchers indicate large clusters of resting orders extending downward toward the $73 price region.
- Total Value Locked across Solana managed to hold flat at $5.41B despite widespread token depreciation and broad derivatives deleveraging.
Derivatives Heatmaps Point Toward Seventy Three
Solana slid 20% over the past 30 days, trading down heavily as derivative market participants unwind long exposure ahead of U.S. midterm elections. Crypto analyst Joao Wedson warned that historical performance models point to persistent downward pressure during midterm cycles. Order-book depth and liquidation heatmaps monitored across major spot venues reveal dense clusters of leveraged positions sitting directly below current market prices. Those liquidation clusters act as active gravitational pulls on spot order books. Prices drift lower toward resting liquidity pools.
Liquidity pools extend downward toward the $73 price region on active exchange charts. Traders adjusted margin requirements rapidly. The drop accelerated across morning sessions.
Network Revenue Collapses Alongside On Chain Activity
On-chain data compiled by Artemis confirms that protocol revenue fell from $1.30M recorded on October 6 down to $442,000 at the time of reporting. Daily transaction volume on Solana dropped from roughly 163,000,000 to 120,000,000 transactions as active wallet participation cooled across decentralized applications. Declining transaction metrics reduce immediate fee burn and weaken fundamental demand for the underlying token. On-chain velocity slowed to a crawl.
TVL across the network managed a slight 1% gain over a 24-hour window to reach $5.41B. Capital remained parked inside protocol smart contracts despite declining spot valuations. Users refused to panic-unstake their holdings entirely.
Spot ETF Outflows Target United States Investors
U.S. spot Solana exchange-traded funds registered $71.48M in net capital outflows over the prior five trading sessions according to institutional fund monitor logs. Total net assets across approved Solana investment products sit at $1.40B. The recent withdrawal wave equals roughly 5% of total protocol market capitalization. Institutional allocators cut risk aggressively. Portfolio managers cleared exposure books.
Selling pressure intensified as traditional finance participants reduced crypto asset weightings ahead of national legislative polling. Institutional desks refused to add fresh capital allocations. Market makers absorbed the institutional dumping.
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