Solana Price Slips Below $70 as Institutional Demand Remains Strong

Solana's price has slipped below $70, marking its fourth consecutive trading day in decline. Despite this weakness, institutional demand for Solana-linked products remains strong.

According to recent data, Solana-focused exchange-traded funds (ETFs) saw nearly $3 million in inflows on Thursday, pushing the weekly total above $7 million. This influx of capital has helped offset earlier monthly outflows and sustained the trend of consecutive monthly inflows.

Morgan Stanley has filed an amended S-1 with the U.S. Securities and Exchange Commission for its Solana ETF, MSOL. The proposal includes a staking structure that would allow 95% of staking rewards to remain within the trusts, while 5% would be allocated to staking service providers and custodians.

Meanwhile, retail activity in Solana's derivatives market has cooled, with open interest in SOL futures dropping from approximately $5.18 billion earlier in the week to around $4.85 billion. Long traders lost more than $13 million in the last 24 hours, outpacing short traders who incurred significantly less losses.

Despite this decline in derivatives activity, Solana's on-chain usage remains robust, with the tokenized real-world asset sector showing particular strength following SpaceX's tokenized IPO launch on Solana. The network has become the largest blockchain for RWA holders, boasting over 285,000 participants.