Despite a 30% price decline over the past month, Solana (SOL) is attracting significant institutional investment. SOL-focused exchange-traded funds (ETFs) have seen six consecutive days of net inflows, totaling $2.4 million, even as Bitcoin and Ethereum ETFs experience outflows. This confidence is supported by Solana’s leading position in decentralized application (DApp) revenue and a sharp increase in its capital efficiency.
Institutional conviction in a layer-1 blockchain is often signaled by sustained investment. Solana is currently demonstrating this trend, with its ETFs securing a six-day streak of net inflows amounting to $2.4 million. This pattern emerges while ETFs for Bitcoin and Ethereum have recorded consistent outflows, highlighting a distinct divergence.
On a technical level, however, SOL’s price has retreated by 30% in the last month with no immediate signs of a bullish reversal. Despite this pullback, fundamental network activity remains robust, as DApp revenue data shows Solana leads its peers with $3.4 million generated in a 24-hour period.
The network’s financial health is further underscored by a significant improvement in capital efficiency. Analysis indicates Solana’s app revenue capture ratio surged from 262% to 375% last quarter. This means for every dollar spent on network fees, DApps are now generating $3.75 in revenue.
This enhanced efficiency suggests the network can thrive even when overall activity cools during market volatility. It provides a key metric for institutional investors assessing long-term viability and developer returns, reinforcing confidence in the blockchain’s fundamentals. The combination of strong inflows and efficient revenue generation paints a picture of sustained institutional interest.
