$SOL Solana is facing a “key test” as about 78% of SOL holders are sitting in losses while the token grapples with broken support levels following a sharp drop from mid-2025 highs.

At the same time, inflows into Solana ETFs continue — boosting optimism that institutional interest and fresh capital could help stabilize SOL amid volatility.

A noteworthy governance development: the community has proposed SIMD-0411, which would accelerate the decrease of SOL’s inflation rate — potentially reducing future supply pressure and improving long-term tokenomics.

On the ecosystem side, a new liquidity gateway called Sunrise is being rolled out — aimed at bringing assets from other blockchains into Solana more easily, potentially boosting DeFi adoption and TVL.

The overall picture remains mixed: while technical pain and holder losses pose short-term risk, structural changes like reduced inflation, ETF inflows, and improved cross-chain infrastructure could strengthen Solana’s long-term outlook.#solana #solanAnalysis