It's a fact! The crypto market has been going through a difficult phase for several weeks. Analysts, however, are drawing attention to an unexpected divergence between two smart contract blockchains. Ethereum posted a decline of around 17% over the month, while Solana lost more than 20%. The price of the SOL token has therefore fallen by 12% against ETH since the beginning of June. A gap that deserves careful reading!
In brief
- Solana has recorded a greater decline than Ethereum since the beginning of June.
- The divergence could create an opportunity if institutional flows return.
- Crypto analysts anticipate a prolonged consolidation phase for Solana below key technical resistance.
Correction of the crypto market: Solana loses more than Ethereum
Almost all crypto investors and traders know it very well: the month of June is historically difficult for altcoins. This year, however, the situation seems to have worsened considerably.
The proof: Ethereum's monthly decline to -17.1% already represents more than double its historical average. Solana suffers more with a fall of 20.5%. THE price of this crypto asset even fell to around $61, its lowest level in more than two years. At the time of writing, the SOL token is trading around $66.
That's not all! According to CoinGlass data, open interest on Solana futures also contracted by 15%. This represents several hundred million dollars.
Yet ETFs and derivatives tell a more nuanced story
Logic would dictate that a fall of this magnitude would be accompanied by a massive flight of capital. However, the data reveals unexpected resistance.
THE Spot Ethereum ETF undergo continuous outflows. The data shows negative daily net flows of approximately $35.59 million. Nevertheless, their total net assets remain close to 8.96 billion. Certainly, this level does not support the price of ETH. However, it attests to a mature institutional base.
Conversely, theSolana ETF ecosystem is more modest with approximately $729 million in net assets. THE data reporting no mass release. On the other hand, significant entries are just as significant.
In the derivatives market, Coinalyze reveals unexpected resistance from traders. Ethereum Open Interest remains at 10.06 billion. A slightly positive funding rate at 0.0040. Solana displays the same profile: Open Interest at $1.80 billion and positive funding rate at 0.0070. These levels do not signal confidence, but rather the absence of capitulation.
The performance gap is largely explained by the dynamics of institutional flows
Ethereum ETFs act as volatility dampener. Solana does not yet benefit from this shield regulated by the SEC. In periods of global decline, fund managers prefer to secure their positions on assets deemed more mature.
Three variables therefore deserve particular attention:
- the evolution of ETF flows on Solana;
- the return of activity on the futures markets;
- the ability of the crypto ecosystem to maintain its on-chain volumes.
Galaxy Research highlights that DeFi, stablecoins and Solana tokenized assets maintain significant volumes despite the slowdown.
In any case, the current correction redistributes the cards between the large crypto blockchains. The coming weeks will determine whether this divergence signals a rebound or a new phase of weakness for the Solana ecosystem.
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