Overview:

• Solana faces a sharp slowdown, with network activity down nearly 97% from its 2024 peak, exposing reliance on memecoin-driven speculation and pushing SOL into a deep correction.

• Institutional optimism remains intact, with Bitwise forecasting Bitcoin breaking out of its four-year cycle and reaching new highs in 2026, driven by ETFs, regulation, and lower volatility.

• DeFi and stablecoins diverge, with AAVE falling on governance uncertainty while Ripple’s RLUSD and Uniswap’s fee-switch vote signal long-term structural evolution.

The crypto market has seen major developments at the start of the week, including declines in network activity across some ecosystems, governance turmoil in DeFi, ETF outflows, and optimism among institutional investors, from Solana’s sharp slowdown to Bitwise’s bullish 2026 outlook and Uniswap’s landmark governance vote.

Solana Activity Collapses, SOL at a Crossroads

Solana’s on-chain activity has plunged in 2025, with usage down nearly 97% from its 2024 peak. At the height of last year’s rally, the network saw over 30 million active traders, but it has now fallen below 1 million monthly users. 

The decline weighed heavily on SOL, which dropped from around $300 to near $120, a 58% correction.

The collapse followed the unwind of memecoin speculation, which had driven much of Solana’s transaction volume, fees, and short-term demand. 

While supporters argue memecoins served as a “stress test” for the chain, the speed of the activity drop has exposed how dependent recent growth had become on speculative flows.

Bitwise: Bitcoin to Break the Cycle in 2026

Despite near-term volatility, Bitwise remains strongly bullish on the long-term outlook. Bitwise CIO Matt Hougan believes Bitcoin will defy its traditional four-year cycle and reach new all-time highs in 2026.

Hougan argues that the drivers of past cycles' halvings, rising rates, and leverage-driven liquidations are weakening. 

Instead, falling interest rate expectations, reduced liquidation risk, and accelerating institutional adoption are becoming dominant forces. 

Bitwise expects platforms such as Morgan Stanley, Wells Fargo, and Merrill Lynch to deepen crypto allocations, while regulatory momentum under the Trump administration encourages broader institutional entry.

Also Read: Bitcoin Price Holds Near $88,820 as Market Enters Consolidation Phase

Ripple’s RLUSD Breaks Into Top Stablecoins

On its first anniversary, Ripple's stablecoin RLUSD has climbed into the top five of US-regulated stablecoins.

Launched in December 2024, RLUSD has a market cap of around $1.3 billion, ranking third among regulated stablecoins, just behind USDC and PYUSD.

Ripple has got the key regulatory approvals, teamed up with BNY Global for reserve custody, and brought in Deloitte for confirmations.

RLUSD has also positioned itself as a bridge for tokenized real-world assets, accepting hedge funds from BlackRock and VanEck, and plans to expand across multiple blockchains.

AAVE Slides After Governance Turmoil

The governance proposal to move DeFi heavyweight Aave to total community ownership sparked controversy, and the token plunged more than 10% to around $160. 

The proposal was put to a snapshot vote without complete consensus, thereby triggering dissent among participants and fears of rushed governance.

On-chain data show an increase in activity among delegates who were previously inactive, raising concerns about concentrated voting power.

Even though Aave has excellent fundamentals, such as annualized fees of over $726 million and a total value locked of $33 billion, this event rattled confidence.

Ethereum ETFs See Heavy Outflows

According to SOSOvalue, last week, Ethereum spot ETFs saw a net outflow of $644 million, with none of the nine ETFs experiencing net inflows. 

BlackRock's ETF ETHA recorded the largest net weekly outflow, $558 million. 

Currently, ETHA's total historical net inflow is $12.67 billion. The second largest was Grayscale's Ethereum Trust ETF ETHE, with a weekly net outflow of $32.36 million. 

Currently, ETHE's total historical net outflow stands at $5.05 billion. The total net asset value of Ethereum spot ETFs is $18.21 billion, and the ETF net asset ratio (market value as a percentage of Ethereum's total market value) is 5.04%.

Also Read: Ethereum at a Critical Zone: Will Bulls or Bears Take Control?

Uniswap Nears Historic Fee Switch

Uniswap’s ‘UNIfication’ proposal has crossed quorum, with 99% of voters backing activation of the long-debated fee switch. 

The change would redirect a portion of trading fees to burn UNI tokens, potentially reducing supply by $130 million annually, alongside a one-time 100 million UNI treasury burn.

If implemented, the proposal would transform UNI from a governance-only token into a value-accruing asset, marking a pivotal shift in DeFi token economics.