Solana crypto news has been observing signs of cooling network activity lately. At the same time, SOL price has also been threatening to lose its foothold above $200.
However, some key observations suggest that the state of the network might be preparing for a robust comeback.
A recap of some of the top Solana network metrics revealed that the network took a step back compared to its aggressive growth trajectory, few months ago.
For example, its TVL tanked from $13.2 billion to $11 billion in the last 2 weeks. Weekly DEX volume also cooled from a daily high of over $6 billion to less than $4 billion in a matter of days.
Nowhere was Solana’s declining activity more apparent than in its address activity.
The Solana network had just over 13 million weekly active addresses between 22 and 28 September. This was the lowest weekly network activity recorded in the last 12 months.
The declining Solana network address activity also reflected on its transactions. The latter cooled to levels last seen in April.
Declining Solana Network Demand Affects SOL Price Action
SOL price risked closing the month in the red courtesy of its aggressive bearish retracement in the second half of September.
The cryptocurrency previously achieved aggressive upside in the first half of the month. SOL price pulled back by as much as 24% in the last 2 weeks.
This bearish outcome eliminated the previous gains that the Solana-native cryptocurrency had achieved in the first half of the month.
The bearish price outcome reflected Solana’s declining network activity. Interestingly, SOL price recently demonstrated support within a key Fibonacci retracement zone.
SOL price already bounced back by 6% on Friday and maintained limited sell pressure on Saturday. This could signal readiness for a recovery, although it did not guarantee that the price would not dip lower.
There was one major observation that could boost investor confidence. September turned out to be the month that Solana secured the highest net inflows in recent history.
The bulk of those net inflows occurred in the last 2 weeks. This was around the same time that Price embarked on a retracement. Such an outcome potentially highlights more investment in the network.
Solana Staking ETFs – The Catalyst Solana Crypto (SOL) Price Needs
Solana already has the Rex Osprey ETF, which was launched earlier this month. That ETF has since received about $308 million worth of total inflows.
More Solana ETFs might be about to spice things up, according to recent reports. An analyst revealed that at least SOL staking ETFs could be about to debut in the next 2 weeks.
This means the ETFs will acquire SOL with the intention of using it to earn yield through staking.
This move also suggests that they could engage in long-term holding, which will likely contribute to a higher SOL floor price.
Although there was no official confirmation regarding the SOL staking ETF prospect, the altcoin ETFs narrative has been gaining traction in the last few days.
Solana is among the top coins likely to receive staking ETF approvals. The presence of multiple Solana ETFs aside from Rex Osprey could potentially boost its price action.
Unlike Bitcoin and Ethereum, which also have ETFs, Solana only has one spot ETF at the moment. The prospect of more Solana ETFs coming into the fold is certainly an interesting development.
However, more importantly, it could also boost SOL price, considering the growing institutional interest. Its latest pullback may thus present a discounted opportunity.