Key Takeaways
Why is Solana in focus this cycle?
Solana is at the center of a potential divergence where price may finally catch up to fundamentals, driven by on-chain growth.
How is SOL performing compared to BTC?
While BTC faces speculative scrutiny, SOL’s on-chain activity and RWA growth highlight strong underlying fundamentals, setting it apart.
The market is approaching a key inflection point.
Typically, price tends to lag fundamentals. In other words, strong network activity or adoption doesn’t always translate to immediate gains. But this cycle, that usual disconnect, is actually starting to carve out.
Right at the center of this setup is Solana [SOL]. According to AMBCrypto, it could act as a key indicator of whether price finally aligns with its underlying fundamentals.
BTC under pressure, SOL divergence in focus
Market FUD is hitting hard, delivering a much-needed reality check.
On the macro side, institutional appetite is cooling, with many top-cap treasury companies bleeding capital. The big driver behind Bitcoin’s [BTC] back-to-back bullish quarters? Massive institutional accumulation.
Take MicroStrategy [MSTR]. They bought BTC in 21 separate transactions across Q2 and Q3, fueling a roughly 36% rally and consecutive all-time highs. Fast-forward to Q4, and MSTR is now down about 50%.
Source: TradingView (SOL/USDT)
In short, Bitcoin’s main catalyst is under heavy pressure.
Solana hasn’t escaped the fallout. From a technical standpoint, SOL is down roughly 40% this quarter, nearly double BTC’s loss. Zooming out, similar weakness is showing up across most top altcoins.
However, on-chain activity on Solana is heating up.
Sure, it might sound like another case of price lagging fundamentals, but with BTC DATs under the microscope, could this be the cycle where the divergence finally closes, with Solana leading the charge?
Solana gains momentum amid macro FUD
For Solana, this week has seen a series of key developments.
Coinbase announced plans to acquire Vector, an on-chain platform built on Solana. Meanwhile, several new SOL ETFs went live, including FSOL (Fidelity), TSOL (21Shares), VSOL (VanEck), and SOLC (Canary Capital).
On-chain, Solana kicked off November with its RWA TVL hitting $800 million, up 13% for the month, as Circle minted $6.75 billion in USDC on the L1. Meanwhile, BlackRock’s BUIDL fund jumped 768% QoQ.
Source: RWA.xyz
In short, despite macro FUD, institutional conviction in SOL remains solid.
ETF inflows, new launches, and RWA growth all highlight Solana’s underlying strength, with Coinbase’s Vector deal adding extra momentum. This stands in stark contrast to waning institutional appetite for BTC.
In fact, bulls are already questioning BTC’s lack of a real-use case, reinforcing its speculative nature. In this context, Solana’s on-chain growth stands out, paving the way for price to finally align with fundamentals.
Source: https://ambcrypto.com/sol-etfs-launch-rwas-surge-is-the-crypto-market-sleeping-on-solana/
