Institutional Demand is Rising, But Why Hasn’t Solana’s Price Exploded?

Although US Solana ETFs surpassed $1 billion in net assets by early 2026, SOL's price has fallen over 50% in the past year, disappointing holders. Institutional appeal is evident through milestones like the launch of the FRNT stablecoin by the Wyoming Stable Token Commission and Jupiter introducing JupUSD, leading to Solana's total stablecoin supply hitting a new high of over $15 billion. Furthermore, the total value of Real-World Assets (RWA) on Solana surpassed $931 million, driven by demand for tokenized assets from major firms. However, Solana still lags behind Ethereum and BNB Chain in both stablecoin supply and RWA tokenization. The core reason for the stagnant price performance, despite strong on-chain fundamentals reflecting institutional interest, is the prolonged absence of significant retail trading activity above the $100 price level over the last two years. A return of retail participation could align with institutional inflows and trigger a new bullish cycle for SOL.

(Source：BeInCrypto)