Solana News Update: Infrastructure Improvements and ETFs Drive Solana’s Expansion, Yet Price Drops Challenge Positive Outlook

Bitget-RWA2025/11/06 17:20

By:Bitget-RWA

- Solana's liquidity surges via $280M ETF inflows and infrastructure upgrades, including 20x faster archive calls and 99.95% uptime from Alchemy. - USD1 stablecoin challenges USDC's $9B dominance on Solana through Bonk/Raydium partnerships and $2.91B circulation growth since April 2025. - Despite $5B projected ETF inflows, Solana's price fell to $175 amid bearish technical indicators and 30% Q3 user base decline, raising sustainability concerns. - Regulatory clarity from the 2025 GENIUS Act and Tangem's US

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The

Solana

blockchain is witnessing a notable increase in liquidity, fueled by infrastructure enhancements and growing institutional participation. Recent milestones—such as $280 million flowing into U.S. Solana ETFs and new alliances to broaden stablecoin applications—underscore the network’s rising popularity among both investors and developers, according to

a Cryptonews report

Web3 infrastructure provider Alchemy has revamped its Solana stack to accommodate surging demand from ETFs, wallets, and trading services. These improvements, which deliver archive calls up to 20 times faster and 99.95% uptime, are designed to maintain smooth operations during periods of high activity. This comes after Solana ETFs attracted $280 million over six days, with experts predicting inflows could reach $5 billion within a year, the report states.

Solana News Update: Infrastructure Improvements and ETFs Drive Solana’s Expansion, Yet Price Drops Challenge Positive Outlook image 0

These infrastructure upgrades are vital as Solana vies with

Ethereum

and other blockchain platforms for institutional investment.

World Liberty Financial (WLFI), which has ties to U.S. President Donald Trump, is taking on Circle’s lead in Solana’s stablecoin sector with its

USD1

token, as reported by

a Yahoo Finance report

. The company has teamed up with

memecoin

project

Bonk

and decentralized exchange

Raydium

to incorporate USD1 into trading pools and launchpads. According to DeFiLlama,

USDC

currently makes up more than $9 billion of the $14.2 billion in stablecoins circulating on Solana, but since USD1’s debut in April 2025, its supply has quickly climbed to $2.91 billion, as outlined in

a Cryptonews article

. WLFI’s approach involves offering substantial incentives to liquidity providers and traders to accelerate USD1’s uptake, the Yahoo report highlights.

Despite positive developments, Solana’s price has come under pressure, trading at $175 on November 3, 2025, after a 6% drop during the day, according to

an FXStreet forecast

. Technical analysis points to a bearish outlook, with the price below the 200-day EMA and a possible fall below the $174–$177 support range that could trigger a further 10% decline to $153–$156, the FXStreet report cautions. Derivatives data also indicate waning retail interest, as

SOL

futures open interest fell by 1.56% in 24 hours, and long liquidations exceeded shorts by $41.2 million, the forecast notes. Nevertheless, the ongoing ETF inflows and infrastructure improvements continue to support hopes for a recovery, as mentioned in the Cryptonews report.

Regulatory developments are also influencing Solana’s direction. The U.S. GENIUS Act of 2025, which sets standards for payment stablecoins and requires full-reserve backing, has impacted products like Tangem’s Visa card based on USDC, according to

a Cryptopolitan article

. Tangem’s self-custody card, launching in 42 countries this November, enables users to spend USDC on the Polygon network while meeting KYC regulations, the article notes. Meanwhile, Solana’s active user count dropped by 30% in Q3 2025, raising concerns about long-term engagement, as

TradingView note

reports.

Solana’s challenge will be to sustain rapid expansion while ensuring technical stability, which is crucial for its standing as a leading blockchain for DeFi and institutional players. Although USDC remains the primary stablecoin, USD1’s assertive growth and ongoing infrastructure enhancements could alter the stablecoin market. Observers will be watching closely to see if Solana can maintain its liquidity momentum amid broader market fluctuations.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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1. Technology stocks fell sharply as investor interest shifted toward energy and selected defensive assets. From October 10 to 16, the Nasdaq 100 declined 5.49% and the S&P 500 fell 1.95%, while the Dow gained 0.67% and WTI crude rose 10.41%. BTC, ETH, and SOL declined 1.27%, 2.65%, and 4.44%, respectively. This week's technology earnings will be an important test of whether revenue growth, margins, and cash flow can justify current valuations. Better-than-expected results could help stabilize markets in the near term. 2. Crypto continues to see pockets of strong activity, but a broad-based altcoin season has yet to materialize. CoinMarketCap's (CMC) Altcoin Season Index stood at 54 as of the October 18 UTC daily observation, below the altcoin-season threshold of 75, while BTC dominance rose to 60.08%. Our proxy leverage ratio fluctuated between 4.00 and 4.07 during the week, showing no sustained increase and suggesting limited appetite for additional leverage. Meanwhile, as major exchanges expand access to traditional financial assets, the recent sell-off in AI-related equities could attract short-term speculative capital away from crypto. Such capital rotation could make it more difficult for a new altcoin season to take hold. 3. Papertrade's loss-to-mine model has generated significant interest across the crypto community. The protocol combines high-leverage derivatives trading with zero slippage and a mechanism that rewards trading losses with PAPER tokens. Across the eight complete UTC days from October 10 to 17, cumulative reported revenue reached approximately $56.08 million, including $51.90 million distributed to token holders. With growing participation from key opinion leaders (KOLs), Papertrade has reportedly ranked among the top three platforms by profitability in the broader market recently. Assets to watch: BTC, ETH, SOL, ARB, OP, SKHYNIX, SKHY, META, TSLA, LRCX, and SPCX. Key research priorities this week: Cash flow performance in technology earnings; the relative discount and holding costs of the two SK Hynix contracts; and U.S. initial jobless claims and PMI data. Weekly market data cover the period through October 16, while research information was verified through October 18. Observation periods are specified separately for each chart.

Bitget•2026/10/19 06:51