Solana fell below $70 on Friday, extending its losing streak to a fourth straight trading day. Even so, institutional demand kept rising, while network activity stayed firm despite weaker price action. Solana-focused exchange-traded funds drew nearly $3 million in inflows on Thursday, lifting weekly inflows above $7 million. At the same time, Morgan Stanley filed an amended S-1 with the U.S. Securities and Exchange Commission for its Solana ETF, MSOL.
Recent ETF flows showed fresh capital entering Solana-linked products. Thursday’s nearly $3 million inflow pushed the weekly total beyond $7 million. That pace helped offset earlier monthly outflows and kept the broader trend intact. If the inflows continue, Solana could return to positive monthly territory and extend its streak of consecutive monthly inflows.
Morgan Stanley also moved ahead with its digital asset plans. The firm updated proposed Ethereum and Solana ETFs with a staking structure. Under the filings, 95% of staking rewards would remain inside the trusts, while 5% would go to staking service providers and custodians. Morgan Stanley said the sponsor would collect only the annual 0.14% fee.
The amendments marked another step in the bank’s push into crypto funds. The proposed structure would let the trusts stake portions of their holdings and generate extra income for investors. The filings arrived as traditional financial institutions continued to expand their interest in Solana-linked products.
Retail activity in Solana’s derivatives market cooled during the same period. Open interest in SOL futures dropped from about $5.18 billion earlier in the week to roughly $4.85 billion. That decline suggested that some traders closed leveraged positions as price pressure continued.
Liquidation data also pointed to weaker short-term sentiment. Long traders lost more than $13 million in the last 24 hours, far more than short traders. That imbalance showed that leveraged buyers absorbed most of the pressure as the market moved lower. Still, the data did not erase the broader activity across the network.
At the same time, Solana’s on-chain usage kept expanding. The tokenized real-world asset sector showed particular strength after SpaceX’s tokenized IPO launched on Solana. Reportedly, the network became the largest blockchain for RWA holders, with more than 285,000 participants. That marked a notable milestone even as price action remained under strain.
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Traders now watch key downside levels on the chart. If Solana extends lower, the next area of interest sits near the June low around $60.13. Below that, a fair value gap between roughly $46.90 and $51.12 could attract price if bearish momentum deepens.
For now, Solana remains caught between weaker technical signals and stronger fundamental activity. ETF inflows continue to rise, institutional filings keep coming, and on-chain participation remains active. At the same time, futures activity has cooled and liquidations have hurt long traders. The market now waits to see which side drives the next move.
Solana remains under price pressure after slipping below $70, but ETF inflows, Morgan Stanley’s amended filing, and strong on-chain activity show sustained institutional and network interest. Traders are now watching whether these fundamentals can offset weaker derivatives demand and protect key support levels.