Solana's native token, SOL, surged to $161 following the announcement of its first exchange-traded fund (ETF) featuring staking capabilities. Although this news initially excited traders, institutional demand appears muted, and several factors may inhibit a sustained rally. Despite the SOL price rising by 7%, it later adjusted to $157, remaining 47% below its all-time high of $295. Potential challenges include approximately $585 million worth of SOL being unlocked from staking over the next two months, ongoing sell-offs from successful decentralized applications (DApps), and increased competition. For instance, significant sell-offs have been reported from platforms like Pump, which transferred over $404 million worth of SOL to exchanges in 2025. Additionally, the Solana Trust, which has been active for over two years, manages only about $75 million in assets, contrasting sharply with Ethereum's $10 billion held prior to its ETF launch. Given these dynamics, including low network activity and forecasted competition from other networks, indications suggest that the current SOL rally may not be sustainable.

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