Solana - How SOL’s ETF boom pushed Jupiter Lend TVL above $2B

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Solana – How SOLs ETF boom pushed Jupiter Lend TVL above $2B

The Solana [SOL] ecosystem is surging on the back of the Bitwise Solana Staking ETF [BSOL], which has become its leading institutional product with cumulative net inflows approaching $1 billion. Rising BSOL inflows now account for a significant share of Solanas total market capitalization.

Bitwise Solana ETF inflows

At press time, the Bitwise Solana ETF recorded daily net inflows of over $2.29 million, with an average volume of 1.53 million SOL. This lifted cumulative net inflows to $905 million, while assets under management stood at $694.15 million, equal to 1.41% of Solanas total market capitalization.

Source: SoSoValue

Last week alone, Solana ETFs recorded $15.6 million in inflows, marking their third straight week of inflows.

In total, Solana ETFs have attracted $1.13 billion in cumulative net inflows, with total assets under management at $971.34 million and daily net inflows of $5.94 million.

Despite the altcoin‘s muted price, all of these demonstrated institutional demand. As a result, Bitwise Solana ETF’s effects have spread across the SOL ecosystem.

Impact of Bitwise Solana ETF effect

First, liquidity has been expanding across Solana-native protocols. This surplus capital is often moving into lending, staking, and yield-bearing protocols like Jupiter, among others.

For instance, Jupiter Lend on Solana surpassed $2 billion in Total Value Locked (TVL). This was a $600 million increase over the previous months reading of less than $1.50 billion.

Source: Token Terminal

Additionally, institutions and whales are now borrowing against Solana rather than selling it. Hence, the resultant higher price in SOL increases the collateral value, which boosts the borrowing power and TVL of Solana. This trend indicates the big players are expecting the altcoin to appreciate in value.

Moreover, the Bitwise Solana ETF effect increased the blockchains on-chain activity and overall sentiment. This explains why traders are rotating spot Solana into DeFi strategies.

For instance, foreign tokens on Solana hit a new all-time high of 10% of the chains spot DEX volume last week. Moreover, Solana has become a preferred venue for trading spot assets, even those from other networks.