A crypto trader who bet on Solana for two years and earned $145,000 in rewards still exited with a net loss of $1.05 million.
Important points:
- Solana holders sold 21,911 units and lost $1.05 million. $SOL Despite earning $145,000 in staking rewards over two years.
- Solana’s 5.86% APY failed to offset the 64% price decline from its all-time high of $294 hit in January 2025.
- $SOL At the time of writing, it is trading around $84. Institutional demand remained strong even as retail investors absorbed large losses.
Loss despite earning staking rewards
The trader’s total cost basis was approximately $2.91 million. Over two years of staking, the wallet earned an additional $1,711. $SOL You will receive approximately $145,000 worth of compensation and your total holdings will be 21,911. $SOL. When these tokens were sold for $1.85 million, the net realized loss was just over $1.05 million. The Solana network currently offers a staking APY of approximately 5.86%. This is one of the most competitive yields in the proof-of-stake ecosystem, but even that cushion could not absorb price declines.
The collapse of Solana from its peak level to its current level is telling. The coin reached its then-highest price of approximately $294 in January 2025, boosted by the launch of the TRUMP meme coin on the Solana network. This was followed by a steep drawdown of 64%. $SOL The decline continues into 2026, with the asset testing the $80 support band in recent months.
The introduction of the Spot Solana Exchange Traded Fund (ETF) in October 2025 was widely expected to stabilize (or revive) institutional investor interest. And Bitcoin.com News Reported in early May Despite BlackRock leading the decline in a $635 million Bitcoin ETF, demand for Solana remains strong, and its resilience has not translated into a sustained price recovery for retail holders.
Separately, its extension $SOL Ministry of Finance We claim above-network average returns in 2026, suggesting that there is still a clear disconnect between institutional strategy and retail performance.
repeating pattern
In today’s macro climate, high nominal staking yields (like those offered by Solana) can give the impression that wealth is accumulating even though underlying asset prices are falling. For the trader in question, the $145,000 earned through staking equates to roughly a 5% profit based on the original cost. but, $SOLMulti-year outflows have wiped out many times that number.
In a prolonged bear market environment, staking rewards represent a portion of potential unrealized losses. For long-term holders, who on average hold positions above current market prices, the math is unlikely to work in their favor absent a structural price recovery.
