The SEC questions whether Solana staking products qualify as ETFs under federal law.
Market Overview
Bitcoin dropped 3% this week, triggering widespread liquidations that wiped out over $827 million across the market as altcoins pulled lower.
Solana was caught in the downturn, but its underlying momentum tells a different story.
In May, more than 1.4 million new tokens were launched on the network. While it's mostly meme coins, it shows that interest in Solana's ecosystem remains strong.
However, the spike in token creation didn’t translate into stronger market metrics. Solana’s overall market cap decreased by 5%, and trading volume tanked again by 8% this week.
Source: CoinMarketCap
The network had its wins. More than $650 million in assets moved from other blockchains to Solana last month, with Ethereum accounting for over $400 million of that total.
Solana's Performance
Solana dropped from $176 to $160 this week, a 9% decline as regulatory pressure cast a shadow over its momentum.
Source: CoinMarketCap
The SEC complicated efforts to bring Solana staking ETFs to market, stating that such products may not meet the legal definition of an ETF under federal securities law.
Despite the price drop and legal headwinds, institutional interest in Solana appears to be holding firm.
Classover Holdings Inc., an education technology firm, announced plans to raise $500 million, with 80% of the funds earmarked for purchasing SOL to hold in its corporate treasury.
L1 Ranking Update
Solana's total value locked (TVL) in DeFi slumped 5% to $10.421 billion. The blockchain held on to its second position as networks suffered steeper losses, with Tron declining 27.7% in the same period.
Source: DeFiLlama
Solana's DEX volume fell by 27% this week, reflecting a broader cooldown in on-chain trading activity.
Source: DeFiLlama
Solana continues to lead in blockchain-generated revenue, hosting some of the fastest-growing crypto applications in the space. Among them, Axiom set a new benchmark by becoming the first application to reach $100 million in revenue in just 129 days.
Biggest Winners & Losers
Top Performers
- Pocket Network (POKT): +316.54%
- WhiteRock (WHITE): +177.5%
- SPX6900 (SPX): +23.37%
- GOHOME (GOHOME): +8.46%
- Zebec Network (ZBCN): +7.73%
Biggest Losers
- Raydium (RAY): -25.93%
- Grass (GRASS): -24.71%
- Helium (HNT): -21.01%
- Render (RENDER): -18.35%
- Virtuals Protocol (VIRTUAL): -17.28%
Latest Solana News
$1 Billion Bet on Solana
Canada’s SOL Strategies has filed to raise up to $1 billion to deepen its investment in the Solana ecosystem through a broad range of financial instruments.
MetaMask Expands to Solana
MetaMask has added native support for Solana on its browser extension, enabling users to interact with Solana-based tokens and apps, with mobile integration coming soon.
Bonk Enters Gaming With Win-to-Earn Shooter
Solana meme coin Bonk has launched Bonk Arena, a browser-based, pay-to-spawn shooter where players earn BONK by eliminating others, marking its first official venture into gaming.
What You Can Do Now
- Monitor SEC updates on the status of Solana staking ETFs.
- Track firms allocating SOL to corporate treasuries.
- Review your portfolio strategy amid market stagnation.
- Try out Bonk’s new browser-based shooter, Bonk Arena.
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