Journalist
Posted:
2026 is already shaping up to be a big turning point for altcoins.
Even with weak rotation, major high-caps are still pulling in solid institutional inflows, backed by improving on-chain metrics. In that mix, Solana [SOL] and Ethereum [ETH] remain the two clear front-runners.
In 2025, Ethereum rolled out several major L1 and L2 upgrades, giving its developer ecosystem a strong boost. The impact is visible on the charts: the SOL/ETH pair has posted three consecutive red weekly candles, sliding down to 0.04, at press time.
Source: TradingView (SOL/ETH)
Notably, the divergence showed up on-chain, too.
On the DeFi front, ETH’s TVL slipped 12.5%, pointing to a clear compression in liquidity. SOL took the bigger hit, with its TVL drop coming in at 2.5× deeper, signalling a sharper cooldown across its major protocols.
Put simply, staking, lending, and borrowing activity on Solana pulled back much harder. The key question is whether this trend can flip going into 2026, especially with Solana’s upgrade stack coming online.
Institutional flows signal growing momentum for Solana
It looks like institutional capital is already front-running a potential flip.
Since the Solana ETF launch, about $660 million in net inflows have come in, edging out Ethereum’s $600 million over the same window. That suggests institutions are starting to lean more toward Solana’s momentum.
Even in RWAs (Real World Assets), Solana is seeing stronger traction. A 12.5% jump in Total Asset Value versus Ethereum’s 6.7% rise. High RWA inflows highlight growing institutional confidence in Solana’s ecosystem.
Source: RWA.xyz
Simply put, more tokenized assets are leaning on Solana for deployment.
This can’t just be a coincidence. Both ETF and RWA flows are showing noticeably higher capital moving into SOL, suggesting that major heavyweights are starting to tilt toward Solana’s on-chain fundamentals.
Looking ahead, the Alpenglow upgrade is expected to deliver a significant boost to Solana’s core capabilities. In this context, the current institutional rotation could mark the “beginning” of a longer-term trend for SOL.
Final Thoughts
- Institutional and RWA flows are increasingly favoring Solana, with SOL ETF inflows surpassing Ethereum and on-chain activity showing stronger traction.
- The upcoming Alpenglow upgrade positions Solana for a potential long-term trend reversal, boosting its core capabilities and fundamentals.