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Bitwise Predicts Solana’s Bullish 2026: Is SOL Set to Rebound?
Key Takeaways
- Solana (SOL) has shown resilience despite recent declines, with optimistic long-term outlooks from institutions like Bitwise.
- The SOL price has fallen to around $123, breaking key support as the broader crypto market remains weak.
- Solana remains a leader in DApp revenue, claiming a top spot consistently over the past 19 months.
- While short-term volatility exists, institutional interest and ETF inflows continue to bolster Solana’s investment appeal.
WEEX Crypto News, 18 December 2025
The Solana ecosystem, despite recent price declines, has been spotlighted by Bitwise as a promising venture that could surpass previous highs by 2026. While the past few weeks have seen Solana prices dipping, affecting the market sentiment, industry stakeholders maintain an optimistic outlook. The digital asset now sits around $123, having broken through the crucial $130 support level—a situation reflecting broader market challenges.
Current Market Sentiment Around Solana
Over the last day, Solana’s value saw a 4% decrease, aligning with a larger crypto market downturn of 1.5%; cumulatively, this represents a 7.5% decline over the week. This recent adjustment is attributed to macroeconomic pressures and perceived vulnerabilities in the cryptocurrency realm. Despite these setbacks, some investors, emboldened by potential long-term gains, await an opportune moment to re-enter the market.
According to Bitwise’s recent market outlook, the long-term growth prospect of Solana remains substantially bright. Their analysis underscores the continued strengthening of Solana’s foundational attributes as the primary driver for future price surges. Back in January 2025, Solana had peaked at a value of $294.33, a stark contrast to its present valuation—a descent of nearly 58%.
Institutional Investments and ETF Inflows
Institutional investments consistently flow into Solana, despite market turbulences. On December 17th alone, Solana’s spot ETF saw net inflows approximating $10.99 million, with $6.96 million credited to Bitwise’s BSOL fund. This contribution increased its total assets under management to $613 million. Simultaneously, Fidelity’s FSOL ETF recorded inflows of $2.89 million, showcasing sustained interest from institutional investors.
Furthermore, blockchain data analytics from Syndica reveal Solana’s impressive DApp income leaderboard status. Not only has Solana led in this domain for 19 consecutive months, but it also accounted for 31% of the total decentralized application income across L1 and L2 networks as of November 2025. This performance highlights the ecosystem’s vibrant activity and solid user base.
Technical Analysis: Navigating Solana’s Price Trajectory
Despite its resilient components, Solana is not immune to short-term market shifts. With its recent dip beneath $130, the focal support line has repositioned to $120. Any breach below this level could prompt further price targets of $110, possibly touching as low as $100. On the contrary, reclaiming $130 and surpassing $140 could denote a favorable uptrend, nudging Solana towards the $150 territory.
The technical landscape indicates that Solana’s price is subjected to current market sentiment, though it benefits from a robust institutional backing and consistent involvement in DApp development.
The Broader Altcoin Market Context
Solana’s recent statistics echo the challenges faced by various alternative coins. According to available data, Solana’s total value locked (TVL) recently dropped to $8.67 billion, marking a six-month low. This scenario parallels other altcoins that mirror the broader speculative sentiments prevailing within the crypto sphere.
Nonetheless, despite the current valuation downturns, Solana persists as a key internet blockchain with substantial cyclical growth potential, per expert predictions and financial inflows. Its technological edge, low transaction fees, and fully developed ecosystem continue to attract developers and investors alike.
Positioning Solana in Your Portfolio
The current Solana outlook encourages investors to consider potential long-term gains. As Solana aligns itself as a staple in a well-diversified crypto portfolio, new investors may explore the opportunities presented by its volatile pricing, especially via institutional-grade instruments like ETFs.
To explore opportunities in leveraging Solana and other promising cryptocurrencies, you might consider signing up for advanced trading platforms like WEEX for an optimized trading experience [sign up here](https://www.weex.com/register?vipCode=vrmi).
FAQ
What is driving Solana’s long-term growth?
Solana’s growth is driven by robust network fundamentals like its processing speed, low transaction costs, and mature ecosystem, which attracts continuous institutional interest and investment products.
How is the institutional interest in Solana trending?
Despite the broader market downturn, institutional demand for Solana remains strong, evidenced by steady ETF inflows and institutional product offerings focusing on Solana.
What price corrections are Solana experiencing now?
Solana recently dropped to approximately $123, having broken the $130 support level, reflecting broader market pressures and potential short-term volatility.
How significant is Solana’s role in the DApp market?
Solana leads the DApp market with a consistent top position for 19 months, capturing about 31% of all revenues in the L1 and L2 DApp spaces.
Are there foreseeable risks with holding Solana?
While favorable in the long-term, Solana may face short-term volatility risks, which can be exacerbated by macroeconomic factors and fluctuating investor sentiment in the crypto markets.
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Over the past 24 hours, the crypto market has shown strong momentum across multiple dimensions. The mainstream discussion has focused on Coinbase's official entry into the prediction market through the acquisition of The Clearing Company, as well as the intense controversy within the AAVE community regarding token incentives and governance rights.
In terms of ecosystem development, Solana has introduced the innovative Kora fee layer aimed at reducing user transaction costs; meanwhile, the Perp DEX competition has intensified, with the showdown between Hyperliquid and Lighter sparking widespread community discussion on the future of decentralized derivatives.
This week, Coinbase announced the acquisition of The Clearing Company, marking another significant move to deepen its presence in this field after last week's announcement of launching a prediction market on its platform.
The Clearing Company's founder, Toni Gemayel, and the team will join Coinbase to jointly drive the development of the prediction market business.
Coinbase's Product Lead, Shan Aggarwal, stated that the growth of the prediction market is still in its early stages and predicts that 2026 will be the breakout year for this field.
The community has reacted positively to this, generally believing that Coinbase's entry will bring significant traffic and compliance advantages to the prediction market. However, this has also sparked discussions about the industry's competitive landscape.
Jai Bhavnani, Founder of Rivalry, commented that for startups, if their product model proves to be successful, industry giants like Coinbase have ample reason to replicate it.
This serves as a reminder to all entrepreneurs in the crypto space that they must build significant moats to withstand competition pressure from these giants.
Regulated prediction market platform Kalshi launched its research arm, Kalshi Research, this week, aimed at opening its internal data to the academic community and researchers to facilitate exploration of prediction market-related topics.
Its inaugural research report highlights Kalshi's outperformance in predicting inflation compared to Wall Street's traditional models. Kalshi co-founder Luana Lopes Lara commented that the power of prediction markets lies in the valuable data they generate, and it is now time to better utilize this data.
Meanwhile, Kalshi announced its support for the BNB Chain (BSC), allowing users to deposit and withdraw BNB and USDT via the BSC network.
This move is seen as a significant step for Kalshi to open its platform to a broader crypto user base, aiming to unlock access to the world's largest prediction market. Furthermore, Kalshi also revealed plans to host the first Prediction Market Summit in 2026 to further drive industry engagement and development.
The AAVE community recently engaged in heated debates around an Aave Improvement Proposal (AIP) titled "AAVE Tokenomics Alignment Phase One - Ownership Governance," aiming to transfer ownership and control of the Aave brand from Aave Labs to Aave DAO.
Aave founder Stani Kulechov publicly stated his intention to vote against the proposal, believing it oversimplifies the complex legal and operational structure, potentially slowing down the development process of core products like Aave V4.
The community's reaction was polarized. Some criticized Stani for adopting a "double standard" in governance and questioned whether his team had siphoned off protocol revenue, while others supported his cautious stance, arguing that significant governance changes require more thorough discussion.
This controversy highlights the tension between the ideal of DAO governance in DeFi projects and the actual power held by core development teams.
Despite governance disputes putting pressure on the AAVE token price, on-chain data shows that Stani Kulechov himself has purchased millions of dollars' worth of AAVE in the past few hours.
Simultaneously, a whale address, 0xDDC4, which had been quiet for 6 months, once again spent 500 ETH (approximately $1.53 million) to purchase 9,629 AAVE tokens. Data indicates that this whale has accumulated nearly 40,000 AAVE over the past year but is currently in an unrealized loss position.
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Another widely circulated article, "Ethereum 2025: From Experiment to Global Infrastructure," provided a comprehensive summary of Ethereum's development over the past year. The article noted that 2025 is a crucial year for Ethereum's transition from an experimental project to global financial infrastructure. Through the Pectra and Fusaka hard forks, Ethereum achieved significant reductions in account abstraction and transaction costs.
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Additionally, a deep research report on propAMM (proactive market maker) sparked community interest. The report's data analysis of propAMMs on Solana like HumidiFi indicated that Solana has achieved, or even surpassed, the level of transaction execution quality in traditional finance (TradFi) markets.
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Research suggests that propAMM is making the vision of the "Internet Capital Market" a reality, with Solana emerging as the prime venue for all of this to happen.
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The community has reacted positively to this, generally believing that Coinbase's entry will bring significant traffic and compliance advantages to the prediction market. However, this has also sparked discussions about the industry's competitive landscape.
Jai Bhavnani, Founder of Rivalry, commented that for startups, if their product model proves to be successful, industry giants like Coinbase have ample reason to replicate it.
This serves as a reminder to all entrepreneurs in the crypto space that they must build significant moats to withstand competition pressure from these giants.
Regulated prediction market platform Kalshi launched its research arm, Kalshi Research, this week, aimed at opening its internal data to the academic community and researchers to facilitate exploration of prediction market-related topics.
Its inaugural research report highlights Kalshi's outperformance in predicting inflation compared to Wall Street's traditional models. Kalshi co-founder Luana Lopes Lara commented that the power of prediction markets lies in the valuable data they generate, and it is now time to better utilize this data.
Meanwhile, Kalshi announced its support for the BNB Chain (BSC), allowing users to deposit and withdraw BNB and USDT via the BSC network.
This move is seen as a significant step for Kalshi to open its platform to a broader crypto user base, aiming to unlock access to the world's largest prediction market. Furthermore, Kalshi also revealed plans to host the first Prediction Market Summit in 2026 to further drive industry engagement and development.
The AAVE community recently engaged in heated debates around an Aave Improvement Proposal (AIP) titled "AAVE Tokenomics Alignment Phase One - Ownership Governance," aiming to transfer ownership and control of the Aave brand from Aave Labs to Aave DAO.
Aave founder Stani Kulechov publicly stated his intention to vote against the proposal, believing it oversimplifies the complex legal and operational structure, potentially slowing down the development process of core products like Aave V4.
The community's reaction was polarized. Some criticized Stani for adopting a "double standard" in governance and questioned whether his team had siphoned off protocol revenue, while others supported his cautious stance, arguing that significant governance changes require more thorough discussion.
This controversy highlights the tension between the ideal of DAO governance in DeFi projects and the actual power held by core development teams.
Despite governance disputes putting pressure on the AAVE token price, on-chain data shows that Stani Kulechov himself has purchased millions of dollars' worth of AAVE in the past few hours.
Simultaneously, a whale address, 0xDDC4, which had been quiet for 6 months, once again spent 500 ETH (approximately $1.53 million) to purchase 9,629 AAVE tokens. Data indicates that this whale has accumulated nearly 40,000 AAVE over the past year but is currently in an unrealized loss position.
The founder and whale's increased holdings during market volatility were interpreted by some investors as a confidence signal in AAVE's long-term value.
In this week's top article, Morpho Labs' "Curator Explained" detailed the role of "curators" in DeFi.
The article likened curators to asset managers in traditional finance, who design, deploy, and manage on-chain vaults, providing users with a one-click diversified investment portfolio.
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Another widely circulated article, "Ethereum 2025: From Experiment to Global Infrastructure," provided a comprehensive summary of Ethereum's development over the past year. The article noted that 2025 is a crucial year for Ethereum's transition from an experimental project to global financial infrastructure. Through the Pectra and Fusaka hard forks, Ethereum achieved significant reductions in account abstraction and transaction costs.
Furthermore, the SEC's clarification of Ethereum's "non-securities" nature and the launch of tokenized funds on the Ethereum mainnet by traditional financial giants like JPMorgan marked Ethereum's gaining recognition from mainstream institutions. The article suggested that whether it is the continued growth of DeFi, the thriving L2 ecosystem, or the integration with the AI field, Ethereum's vision as the "world computer" is gradually becoming a reality.
The Solana Foundation engineering team released a fee layer solution called Kora this week.
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For example, on the SOL-USDC trading pair, HumidiFi is able to provide a highly competitive spread for large trades (0.4-1.6 bps), which is already better than the trading slippage of some mid-cap stocks in traditional markets.
Research suggests that propAMM is making the vision of the "Internet Capital Market" a reality, with Solana emerging as the prime venue for all of this to happen.
The competition in the perpetual contract DEX (Perp DEX) space is becoming increasingly heated.
In its latest official article, Hyperliquid has positioned its emerging competitor, Lighter, alongside centralized exchanges like Binance, referring to it as a platform utilizing a centralized sequencer. Hyperliquid emphasizes its transparency advantage of being "fully on-chain, operated by a validator network, and with no hidden state."
The community widely interprets this as Hyperliquid declaring "war" on Lighter. The technical differences between the two platforms have also become a focal point of discussion: Hyperliquid focuses on ultimate on-chain transparency, while Lighter emphasizes achieving "verifiable execution" through zero-knowledge proofs to provide users with a Central Limit Order Book (CLOB)-like trading experience.
This battle over the future direction of decentralized derivatives exchanges is expected to peak in 2026.
Meanwhile, discussions about Lighter's trading fees have surfaced. Some users have pointed out that Lighter charged as much as 81 basis points (0.81%) for a $2 million USD/JPY forex trade, far exceeding the near-zero spreads of traditional forex brokers.
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