Solana generated over $271 million in network revenue during Q2 2025, leading all layer-1 and layer-2 chains for the third straight quarter. This performance underscores its efficiency in handling high-volume transactions. Investors now eye ETF approvals as a potential catalyst for further growth.
Understanding Solana and Ether Dynamics
Solana processes over 65,000 transactions per second at an average fee of $0.005. Ether, in contrast, averages $3 per transaction.
This cost difference drives Solana's appeal for decentralized exchanges and perpetual futures. Ether maintains a 58% share of total blockchain TVL.
Key Performance Metrics
Solana's TVL hit $22.1 billion in Q3 2025, up from $2.2 billion earlier in the year. Active addresses on Solana matched all major chains combined in June 2025.
Ether handles about 60% of stablecoin transfers year-to-date. Solana's stablecoin supply doubled to $11.7 billion by February 2025.
ETF Approval Prospects for Solana
The SEC will decide on eight Solana ETF applications by October 16, 2025. Prediction markets show a 99% approval probability.
Major filers include Franklin Templeton, Fidelity, and Grayscale. New generic listing standards streamline the process beyond Bitcoin and Ether.
According to Bloomberg Intelligence, approval odds for Solana ETFs stand at 100%. Pantera Capital calls Solana the
next in line
for institutional adoption.
Potential Market Impacts
Approval could attract $3 billion to $8 billion in institutional inflows. This mirrors Ether ETF launches but without Grayscale overhang.
JPMorgan estimates $2.7 billion to $5.2 billion in Solana ETF inflows. Such capital boosts liquidity and hedging via CME futures.
Bitwise CIO Hunter Horsley notes their European Solana staking ETP drew $60 million in five days. Staking features enhance yields in centralized finance products.
Factors for Solana to Outperform Ether
Solana needs sustained ETF creations and real onchain usage to beat Ether. Developer momentum and network reliability play crucial roles.
Sub-cent fees and 400-millisecond block times give Solana an edge in DeFi. Ether's maturity provides stability amid market cycles.
SEC Chair Paul Atkins states most crypto assets are not securities, easing approvals. This shifts centralized finance toward broader altcoin exposure.
Challenges and Risks
Regulatory delays remain a risk for Solana ETFs. Past network outages, like the five-hour downtime in 2024, raise concerns.
Ether ETFs launched without staking, limiting returns. Solana's faster unstaking could offer liquidity advantages in CeFi vehicles.
Strategic Insights for Investors
Monitor creations, open interest on CME, and onchain metrics post-approval. These indicate if inflows translate to adoption.
Diversify across Solana and Ether for balanced exposure. Centralized finance ETFs democratize access to blockchain gains.
Polymarket assigns 89-95% odds for Solana ETF by late 2025. Technical indicators like RSI at 57.63 support bullish SOL momentum.
This analysis reveals how ETF approvals could reshape CeFi integration in crypto. It offers actionable paths for investors navigating layer-1 competition.
