Solana ($SOL) ecosystem is rapidly growing on the back of the Bitwise Solana Staking ETF (BSOL), which has become a major institutional product with cumulative net inflows approaching $1 billion. Growing BSOL inflows now account for a significant portion of Solana’s market capitalization.
Solana ETF inflows in bits
At the time of writing, the Bitwise Solana ETF had daily net inflows of over $2.29 million, with average volume of $1.53 million. $SOL. This brought cumulative net inflows to $905 million and assets under management to $694.15 million, representing 1.41% of Solana’s total market capitalization.
The Solana ETF recorded $15.6 million in inflows last week alone, marking the third consecutive week of inflows.
In total, the Solana ETF has attracted cumulative net inflows of $1.13 billion, with total assets under management of $971.34 million and daily net inflows of $5.94 million.
These all point to institutional demand, even though altcoin prices have been subdued. As a result, the impact of the Bitwise Solana ETF has spread around the world. $SOL ecosystem.
Impact of Bitwise Solana ETF effect
First, liquidity is expanding across Solana native protocols. This excess capital is often moved into lending, staking, and high-yield protocols such as Jupiter.
For example, Solana’s Jupiter Lend has exceeded $2 billion in total value locked (TVL). This was an increase of $600 million compared to less than $1.5 billion the previous month.
Additionally, financial institutions and whales are now borrowing from Solana rather than selling it. Therefore, the resulting price increase is $SOL The collateral value increases, increasing Solana’s borrowing power and TVL. This trend shows that major companies expect altcoins to increase in value.
Additionally, the effect of the Bitwise Solana ETF has increased blockchain on-chain activity and overall sentiment. This explains why traders are converting spot solana into DeFi strategies.
For example, Solana’s foreign tokens hit an all-time high of 10% of the chain’s spot DEX trading volume last week. Additionally, Solana has become the preferred place to trade spot assets, even if they come from other networks.
Final summary
- The Bitwise Solana ETF effect is driving capital inflows into the Solana ecosystem.
- Bitwise’s impact includes expanded liquidity, rotation into altcoin ETFs, and improved overall sentiment.
