Solana has emerged as a remarkable performer in the cryptocurrency landscape during November, not due to rampant speculation but because investors are increasingly viewing it as a yield-generating asset within the blockchain domain. While headlines focused on the outflows from Bitcoin and Ethereum ETFs, a notable shift in capital allocation has been observed, favoring an asset that rewards its holders for network participation instead of relying solely on price increases.
Rather than seeking refuge, both institutional investors and everyday token holders have invested more heavily into Solana“s staking ecosystem. The rationale is straightforward: as traditional yields diminish and Bitcoin ETFs fail to offer staking income, a blockchain that provides annual returns of 5% to 7% for simply holding becomes increasingly appealing.
Throughout most of November, the broader crypto ETF market appeared negative, with billions withdrawn from Bitcoin ETFs and significant redemptions from Ethereum products. In stark contrast, Solana-linked staking ETFs experienced inflows of $369 million within the same period. Analysts suggest this is not merely a rotation but a clear preference among investors.
This trend is particularly notable given that SOL has fluctuated significantly this year, with prices ranging from $100 to $260. Despite these price variations, the total staked supply has grown, rising from 350 million to 407 million SOL over the year. This indicates that participation in staking has not diminished during periods of volatility; rather, it has increased.
The most significant insight isn”t just the ETF flows but also the behavior of stakers on-chain. There has been a noticeable increase in retail delegators, while larger holders have chosen to consolidate their positions instead of liquidating them. Wallets with long-term delegation periods have been on the rise, indicating a shift towards patience rather than short-term trading strategies.
Even amidst sharp market corrections, over 238,000 SOL in new delegations were added from retail addresses alone within a 25-day timeframe. Notably, users of Trezor staked over one million SOL via Everstake in November, a figure that commands attention.
While Ethereum also supports staking, access to staking via ETFs remains severely limited. In contrast, Bitcoin offers no staking yield by design. This positions Solana as the most accessible income-generating cryptocurrency through regulated investment vehicles. Currently, over 67% of all circulating SOL is staked, placing it among a select group of blockchains where staking is not merely a supplementary feature but a fundamental aspect of value retention.
Asset managers have recognized this demand early on. The launch of Solana ETFs last month saw them draw over $420 million in their first week, providing a liquid avenue for institutions to gain SOL exposure while still benefiting from staking economics.
A new trend is emerging in the crypto market, differentiating assets based on their purpose: those that pay holders versus those that are held for potential price appreciation. Presently, Solana fits firmly into the former category, and this trend has become increasingly apparent as capital continues to flow into income-generating assets throughout November.
