Institutional Demand for Solana Skyrockets
Over the past few months, Solana (SOL) has witnessed a significant increase in institutional demand. The total net assets of US-based Solana ETFs surpassed the $1 billion threshold in early 2026. Despite these promising figures, SOL’s price remains underwhelming, falling more than 50% over the past year and trading at levels comparable to two years ago.
This performance has left retail investors disappointed, questioning why such institutional interest hasn’t translated to explosive growth in price. However, there are important factors to consider that shape Solana’s current market dynamics.
Key Milestones on the Solana Network
In recent developments, the Wyoming Stable Token Commission launched the FRNT stablecoin on the Solana blockchain. This launch is unique as it marks the first time a US public authority has issued a stablecoin, with reserves being managed by prominent asset manager Franklin Templeton.
Additionally, Jupiter, in collaboration with Ethena Labs, introduced the JupUSD stablecoin. Approximately 90% of its reserves are USDtb, backed by BlackRock’s tokenized BUIDL fund, while 10% is held in USDC. Such initiatives have propelled Solana’s stablecoin supply to exceed $15 billion, achieving a new all-time high and sparking hopes of liquidity boosts for the ecosystem.
Stablecoin Growth: Liquidity and Challenges
The surge in Solana’s stablecoin supply is undeniably significant, with notable growth in liquidity deployment. Solana’s fast transaction finality and low fees provide an attractive environment for trades, settlements, and application activities within the network. According to analysts, this increased liquidity could bring new opportunities across the ecosystem.
However, Solana’s $15 billion stablecoin supply still pales in comparison to Ethereum’s $181 billion and Tron’s $81 billion. This underscores Solana’s potential but highlights that it still has some way to go in challenging these market leaders.
Institutional Interest in Tokenized Assets
Beyond stablecoins, Solana has made strides in tokenized real-world assets (RWAs). BlackRock, VanEck, and other key players have driven demand for tokenized Tesla and NVIDIA shares within the network. The total value of RWAs on Solana has surpassed $931 million—an all-time high.
Yet, Ethereum and BNB Chain remain the dominant players in asset tokenization, with their RWA values sitting at $12.7 billion and $2 billion, respectively. Despite its progress, Solana’s institutional appeal still lags behind its competitors.
Why Isn’t SOL’s Price Rising?
While Solana has seen an impressive rise in institutional activity, retail participation remains muted. Historically, Solana’s price rallies, such as those in 2021 and 2024, coincided with high retail buying activity. Recent data shows little retail trading above the $100 threshold over the last two years, a factor that has hindered SOL’s price recovery.
If retail investors return to the market, their activity combined with institutional demand could potentially ignite a new bullish cycle for Solana.
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Final Thoughts
While Solana’s price struggles to reflect its growing institutional demand, its expanding stablecoin market and real-world asset tokenization serve as strong indicators of the network’s potential. As market conditions evolve and retail participation grows, Solana could eventually see price gains aligning with its underlying fundamentals.
