The world’s fifth-largest cryptocurrency finds itself at a critical crossroads. While Solana’s price struggles near the $150 mark and monthly token releases create selling pressure, a revolutionary regulatory development could dramatically reshape its institutional prospects. The key question facing investors is whether this November 12, 2025, U.S. government decision can propel SOL beyond its current consolidation phase.
Institutional Staking Breakthrough
A landmark ruling from the U.S. Treasury Department and IRS has removed a significant barrier to institutional cryptocurrency adoption. Revenue Procedure 2025-31 now permits regulated investment vehicles—including ETFs and ETPs—to stake their Proof-of-Stake holdings and distribute rewards to investors without compromising their tax status.
This regulatory shift carries profound implications for the entire digital asset sector. Previously, institutional products couldn’t fully capitalize on the yield-generating potential of networks like Solana, where staking returns typically range in the single-digit percentages. With this obstacle removed, Wall Street can develop revenue-generating crypto funds that appeal to an entirely new investor demographic.
Sustained Institutional Interest Defies Price Weakness
Despite lackluster price performance, Solana continues to demonstrate underlying strength through consistent institutional inflows. U.S. spot Solana ETFs have recorded net positive flows for more than ten consecutive days since early November, attracting over $350 million during this period. This pattern suggests sophisticated investors view current price levels as an attractive entry point.
Should investors sell immediately? Or is it worth buying Solana?
Simultaneously, the Solana ecosystem is expanding significantly into real-world asset tokenization. Figure Technology Solutions announced the launch of $YLDS, an interest-bearing bond token backed by U.S. government securities that operates natively on the Solana blockchain. Separately, The Solana Company (NASDAQ: HSDT) intends to tokenize fund shares through the Superstate platform, aiming to enable 24/7 trading and enhance global liquidity.
Market Headwinds Versus Fundamental Resilience
The ecosystem faces ongoing challenges, however. On November 11, approximately 193,000 SOL tokens valued at around $30 million were released from the FTX and Alameda Research bankruptcy estates. These scheduled monthly unlocks continue to represent a recurring overhang that the market must absorb.
On-chain metrics reveal additional concerns, with active addresses declining to a 12-month low of 3.3 million, reflecting diminished memecoin trading activity. Nevertheless, Solana’s DeFi infrastructure remains robust, with new projects like Biokript Pro DEX introducing advanced security features including on-chain stop-loss functionality.
The central uncertainty remains whether the new staking regulations can trigger a breakthrough that mobilizes billions in institutional capital, or if Solana will remain constrained by near-term selling pressure in the coming months.
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