Solana (SOL) Starts to Retreat From Highs as Momentum Shows Early Fatigue

As institutional demand intensifies and the crypto market recovers, US spot XRP Exchange-Traded Funds (ETFs) continue to lead the sector with a 13-day streak and over $200 million in positive net flows this week, outshining Solana (SOL) ETFs, which recorded their third day of outflows in seven days.

XRP Funds Lead Crypto ETF Inflows

Spot XRP exchange-traded funds have extended their record-breaking streak after registering their thirteenth consecutive day of positive net flows, with $50.27 million in inflows on December 3.

The investment products have seen a remarkable performance since the launch of Canary Capital’s XRPC, the first single-token XRP spot ETF, on November 13, positioning the funds as the fastest-growing altcoin-based category.

Notably, XRPC surpassed all initial expectations and debuted on Nasdaq with a total volume of $58 million, recording around $357.54 million in positive net flows in 13 days. Last week, the second group of XRP funds went live, becoming the largest US ETF launches of 2025 with over $60 million in net inflows each during their first day.

Moreover, the category, led by Grayscale’s GXRP and Franklin Templeton’s XRPZ, surpassed other major ETFs in single-day inflows, including those based on the largest cryptocurrencies by market capitalization, Solana, Bitcoin (BTC), and Ether (ETH).

Amid this week’s market recovery, XRP ETFs saw $89.65 million on Monday, $67.7 million the following day, and an additional $50.27 million on Wednesday, for a cumulative net inflow of $207.66 million during the first three days of December.

As a result, the leading category surpassed both Bitcoin ETFs’ $52.4 million and Ethereum ETFs’ $51.3 million positive net flows, respectively, during the same three-day period.

With a total of $874.28 million in inflows in 13 days, spot XRP ETFs have surpassed the $618.62 million total inflows of SOL ETFs, which held the record among the second wave of altcoin-based investment products.

Solana ETFs Demand Loses Steam

While XRP ETFs take the spotlight, Solana funds’ momentum has slowed, seeing their largest days of outflows this week. According to SoSovalue data, the investment products recorded $32.9 million in outflows on December 3, marking their third negative net flows day since the category debuted on October 28.

Despite pulling out positive net flows, Bitwise’s BSOL, Fidelity’s FSOL, and Grayscale’s GSOL were unable to absorb 21Shares’ TSOL $41.8 million in outflows. This performance also marks the fourth negative day for TSOL over the past week.

As reported by NewsBTC, Solana ETFs experienced a record performance in November despite the market correction, with $613 million in inflows during their 22 consecutive day positive streak.

However, the remarkable streak ended a week ago when TSOL registered negative net flows for the first time, and the category was unable to absorb them, recording outflows of $8.1 million.

SOL-based investment products started December with outflows worth $13.5 million, which were followed by strong inflows worth $45.77 million on Tuesday. On December 3, the funds registered $32.19 million in outflows, amounting to a negative net flow of $700,000 for the first half of the week, despite the altcoin’s recent price recovery.

A group of former executives from the collapsed crypto-friendly Signature Bank has launched a new blockchain-based, state-chartered bank called N3XT, with the goal of enabling instant 24-hour payments.

N3XT said on Thursday that it aims to settle payments instantly at any time using a private blockchain and offers programmable payments through smart contracts. The company added that its systems have been designed for interoperability with stablecoins, utility tokens, and other digital assets.

Signature Bank founder ​​Scott Shay founded N3XT, which will operate under a Wyoming Special Purpose Depository Institution (SPDI) charter and will not offer lending services.

Signature Bank was one of three crypto-friendly banks, along with Silicon Valley Bank and Silvergate Bank, that collapsed in the 2023 US banking crisis due to a bank run and ties to the then-rapidly falling crypto market.

The Federal Deposit Insurance Corporation took control of Signature Bank in March 2023, just days after the collapse of Silicon Valley Bank, and said it had an overreliance on uninsured deposits, weak risk controls and was facing a worsening run on deposits.

N3XT avoiding lending services 

Jeffrey Wallis, Signature Bank’s former director of digital asset and Web3 strategy, will be N3XT’s CEO and President and said that crypto innovations are at the heart of the new venture.

XRP price started a decent increase above $2.120. The price is now correcting gains and might struggle to stay in a positive zone.

• XRP price started a downside correction and tested the $2.080 zone.
• The price is now trading below $2.120 and the 100-hourly Simple Moving Average.
• There is a bearish trend line forming with resistance at $2.110 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could start another increase if it clears $2.150.

XRP Price Dips Again

XRP price started a downside correction from the $2.220 zone, like Bitcoin and Ethereum. The price dipped below the $2.20 and $2.150 levels to enter a consolidation phase.

The price even dipped below the 50% Fib retracement level of the upward move from the $1.984 swing low to the $2.220 high. Besides, there is a bearish trend line forming with resistance at $2.110 on the hourly chart of the XRP/USD pair. However, the bulls remained active above the $2.080 support.

The price is now trading below $2.10 and the 100-hourly Simple Moving Average. If there is a fresh upward move, the price might face resistance near the $2.110 level and the trend line.

The first major resistance is near the $2.150 level, above which the price could rise and test $2.220. A clear move above the $2.220 resistance might send the price toward the $2.2850 resistance. Any more gains might send the price toward the $2.350 resistance. The next major hurdle for the bulls might be near $2.420.

Another Decline?

If XRP fails to clear the $2.150 resistance zone, it could start a fresh decline. Initial support on the downside is near the $2.080 level and the 61.8% Fib retracement level of the upward move from the $1.984 swing low to the $2.220 high. The next major support is near the $2.040 level.

If there is a downside break and a close below the $2.040 level, the price might continue to decline toward $2.00. The next major support sits near the $1.9850 zone, below which the price could continue lower toward $1.920.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $2.080 and $2.040.

Major Resistance Levels – $2.110 and $2.150.

Solana and Coinbase’s Ethereum layer-2 blockchain Base have been bridged together using Chainlink’s technology in a move to increase liquidity between the two networks.

Base said on Thursday that it launched a bridge connecting it to Solana secured by Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Coinbase, enabling seamless asset transfers.

The bridge is now live on mainnet for builders to integrate, and rolling out for anyone to use in apps, including Zora, Aerodrome, Virtuals, Flaunch, and Relay.

Users will also be able to trade Solana (SOL) and many Solana-based assets on Base. Base developers can also integrate the bridge to support Solana assets, such as SPL tokens, natively in their apps.

Solana is the second-largest blockchain by value locked, with $9 billion in assets, while Base is the sixth-largest with $4.5 billion in assets, per DefiLlama. Both blockchains are known for their aim to facilitate trading and low fees.

A crosschain interoperability milestone 

The bridge is a technical milestone, as it joins Ethereum Virtual Machine (EVM)-compatible chains with Solana’s non-EVM architecture.

Base is also positioning itself as a hub for multichain activity rather than competing solely within the EVM ecosystem, which could give it an advantage as users increasingly want access to assets across different chains without managing multiple wallets.

Both Base and Solana have been primarily used for memecoin minting and trading due to their high throughput and low transaction costs.

Activity on Solana has been in decline for a year, with active addresses peaking at over 6 million in November 2024 and subsequently falling to their current levels of 2.4 million, according to DefiLlama. 

Base active addresses have also been in decline since peaking in June 2025; however, the blockchain’s transaction count has risen this year, hitting a monthly peak of nearly 407 million in November.

Reports have disclosed that Ripple CEO Brad Garlinghouse told a Binance-hosted panel he expects Bitcoin to reach $180,000 by December 31, 2026.

Bank Moves Could Be The Spark

According to market coverage, Bitcoin tumbled about $5,000 in roughly three hours during early December, wiping more than $200 billion from the broader crypto market and triggering nearly $700 million in liquidations. That sudden drop has been linked to moves in traditional markets, not a single crypto event.

Some analysts point to a change in Japan’s bond market that is pressuring the long-running yen carry trade. Reports say the Bank of Japan’s policy path is now in focus, with a key decision due in mid-December that could move global risk appetite and the yen.

Whales Bought While Prices Fell

On-chain trackers show large investors added to holdings during the drop. According to on-chain data aggregators, accumulator addresses picked up about 375,000 BTC over recent weeks. That figure, if measured the way those firms define “whales,” suggests big players were buying into weakness.

Stablecoins risk accelerating currency substitution in countries with relatively weak monetary frameworks, potentially undermining central banks' control over capital flows, the International Monetary Fund warned Thursday.

In a report titled "Understanding Stablecoins" published Thursday, the IMF cautioned that the rapid rise of dollar-denominated stablecoins — combined with their ease of cross-border use — could push households and businesses to abandon local currencies in favor of dollar stablecoins, especially in high-inflation or low-trust environments.

"Stablecoins may contribute to currency substitution, increase capital flow volatility by circumventing capital controls, and fragment payment systems unless interoperability is ensured," the IMF wrote. 

"These risks could be more pronounced in countries experiencing high inflation, in countries with weaker institutions, or in countries with diminished confidence in the domestic monetary framework," it added.

The concerns, outlined in a separate IMF blog post and the new report, stemmed from an expansion of stablecoin markets. The two largest stablecoins, USDT and USDC, have tripled in size since 2023 to a combined $260 billion, while trading volumes surged to $23 trillion in 2024, the report said. 

Asia now leads all regions in total stablecoin activity, though usage relative to GDP is most pronounced in Africa, the Middle East and Latin America — regions where currency substitution risks are historically elevated.

Meanwhile, the IMF also sees potential for widening financial access. In many developing regions, mobile-based digital services already outpace traditional banking. Stablecoins — if supported by strong regulatory and legal frameworks — could increase competition, lower payment costs and integrate more people into digital financial ecosystems.

Systemic risks

However, the IMF argued that these benefits come with significant macro-financial hazards. Runs on stablecoins remain a central fear: if users lose confidence in redemption rights or if reserve assets decline in value, issuers could be forced into fire sales of their reserve assets and other holdings, roiling broader markets.

The IMF also said that stablecoins' pseudonymous, cross-border nature could weaken capital controls, facilitate illicit finance and erode the quality of macroeconomic data. The global distribution of holders, often unknown due to unhosted wallets, complicates crisis monitoring and policymaking.

Fragmented rules

Regulation is emerging but remains inconsistent. Its comparative review of Japan, the EU, the U.S. and the UK finds differences in who can issue stablecoins, how reserves are held in custody, and how foreign issuers are treated. 

Such gaps may create opportunities for regulatory arbitrage and weaken the overall effectiveness of oversight, the IMF warned.

The IMF noted that stablecoins are "here to stay," but their impact on the global financial system will depend heavily on coordinated international action to prevent fragmentation, volatility and runaway currency substitution.

The U.S. passed the GENIUS stablecoin bill into law over the summer, and federal agencies are charging forward to write the rules. Earlier this week, Rep. Bryan Steil asked regulators testifying for updates on their progress in implementing the new law.

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