Key points:
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Sol’s permanent futures financing rate turned negative, which underscores the lack of confidence among traders.
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Despite strong fundamentals, institutional participants continued to avoid Solana due to MEV attention.
Solana’s local token Sol(Sol(SOL)(sol), which has not reached the $180 level since late May, raises doubts about whether the Bulls run will still be feasible in 2025. The demand for SOL’s long-term leverage ratio has dropped sharply, which has negatively affected market sentiment.
Monday, Saul is permanent Futures Financing Rate Turns to negative, indicating a high demand for short (sell) positions. This shift is relatively rare given that cryptocurrency traders are generally optimistic about price directions, which suggests a lack of confidence for bullish investors.
Solana faces the L2 competition for growth
Some analysts believe Sol’s competitive advantage has been eroded by the rapid expansion of Ethereum Layer 2 Ecosystem. Others highlighted that Solana’s more integrated user experience is a sustained advantage. Sol saw a drop after Memecoin Mania, but new use cases emerged.
Jito is currently the largest decentralized application (DAPP) in Solana, with a total value lock-in (TVL) holding 17.92 million units, an increase of 12% since January. Provided by Maximum extractable value (MEV) Optimized staking and integrated scattered financial services, Jito shows that Solana continues to innovate and does not rely on the token issuing platform.
Solana also has a 66.5% share, meaning fewer SOL tokens are easily sold on exchanges. By comparison, less than 30% of ether (eth) is placed on Ethereum, while Cardano’s Ada averages 58%. SOL’s current annual stock yield is 7.3%, providing strong incentives for token holders to provide coins.
Solana surpasses Ethereum and Tron in the second quarter
According to a post on Solanafloor X, Solana has led all blockchains for network revenue for the third consecutive quarter.
In the second quarter of 2025, Solana had revenue of $271.8 million, reportedly 64% higher than Tron, surpassing Ethereum’s $129.1 million. Solana’s dominance is also shown in its DAPP activity, with users spending $460 million in 30-day fees. This reflects a healthy ecosystem and inspires developers to build on the platform.
Despite the ongoing criticism Transaction failed and high activity concentration, these are the results of intentional design decisions, representing opportunities for optimization rather than structural weaknesses. If robot activity alone will inflate, there is little reason for the $62.6 million network fee paid in June.
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Robinhood CEO Vlad Tenet reportedly said the Solana-based construction was fired due to MEV concerns, adding that they want “full validator control.” X Conduit’s X user Forrestnorwood noted that Coinbase and Robinhood “choose the maximum control and prefer guaranteed transaction ordering on their own L2.”
If these claims hold and the main body continues to bypass Solana, it may limit the upward space of SOL. These concerns help explain fading interest in the bullish sol position utilized and ultimately relate to a summary strategy of extremely low fees for Ethereum incentive data.
The key question for sol holders is whether Ethereum will eventually abandon its predatory pricing model and be forced to compete on an equal basis. Currently, the chances of SOL to recover $180 are still slim.
This article is for general information purposes and is not intended to be considered legal or investment advice. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent Cointelegraph’s views and opinions.
