Category: Canada

Solana (SOL), one of the fastest-growing blockchain networks, has been making waves in April 2025 with a surge in network activity and the launch of a pioneering exchange-traded fund (ETF) in Canada. With over $120 million in liquidity bridged to the network and a 12% increase in total value locked (TVL), Solana is reasserting its dominance in decentralized finance (DeFi) and memecoin trading. But what’s driving this momentum, and could the new ETF signal broader institutional adoption? This article dives into the details and explores what’s next for Solana.

What’s Happening with Solana?

The Event: Network Surge and ETF Debut

In mid-April 2025, Solana experienced a significant influx of capital, with crypto investors bridging over $120 million in liquidity from competing blockchains like Ethereum and BNB Chain, according to data from deBridge. This follows a challenging period marked by the Argentina LIBRA memecoin scandal, which saw $485 million exit the network. Meanwhile, Solana’s TVL grew by 12% to $7.08 billion, positioning it as the second-largest blockchain by TVL, ahead of Tron and Base.

On April 16, 2025, the 3iQ Solana Staking ETF launched on the Toronto Stock Exchange, closing 3.4% higher at $10.34 on its debut day. This ETF, which allows investors to gain exposure to SOL’s price and staking rewards, marks a significant step toward mainstream adoption. Solana’s trading volume also soared by 32.76% to $4.37 billion, making it the fifth-most transacted cryptocurrency in a 24-hour period.

Who’s Involved?

Key players include Solana Labs, led by CEO Anatoly Yakovenko, who is advocating for a “correlated slashing” mechanism to enhance validator accountability. Institutional investors, such as Ark Invest, which has a known focus on Solana alongside Bitcoin and Ethereum, are also driving interest. Additionally, Janover, a U.S.-based fintech company, has doubled its Solana holdings to $21.2 million, aiming to become the largest corporate holder of SOL in the United States.

When and Where?

The liquidity surge and ETF launch occurred in April 2025, with the ETF debuting on April 16 on Canada’s Toronto Stock Exchange. The capital inflows were tracked over the past 30 days, primarily through cross-chain bridges to Solana’s ecosystem, which operates globally but has seen notable activity in North America and Asia.

Why the Surge?

Several factors are fueling Solana’s resurgence:

• Network Performance: Solana’s Proof-of-History (PoH) consensus mechanism enables thousands of transactions per second at low costs, making it a preferred platform for DeFi and memecoin trading.
• Memecoin Hype: Solana-based memecoins like Fartcoin and BONK have driven retail interest, with Fartcoin surging 50% in early April despite market downturns.
• Institutional Interest: The ETF launch and investments from firms like Janover signal growing confidence in Solana’s long-term potential.
• Technological Upgrades: Recent upgrades, including a fivefold increase in block processing speed and fourfold improvement in RPC performance, as reported by Coinbase, have bolstered Solana’s ecosystem.

How It Works

Solana’s blockchain leverages PoH alongside Proof-of-Stake (PoS) to achieve high throughput and energy efficiency, using roughly the same energy per transaction as a few Google searches. The ETF, managed by 3iQ, allows investors to stake SOL tokens indirectly, earning an 8.31% annualized return while tracking SOL’s price. The capital inflows are facilitated by cross-chain bridges, enabling assets to move seamlessly from Ethereum or BNB Chain to Solana’s DeFi protocols and decentralized exchanges (DEXs).

Background and Context

Solana, launched in 2020, has positioned itself as a faster, cheaper alternative to Ethereum, particularly for DeFi and non-fungible token (NFT) applications. Despite outages in 2022, Solana has improved its reliability and scalability, attracting developers and users. Its ecosystem includes high-profile projects like Boba Guys, which boosted sales by 67% through a Solana-powered loyalty program, and Homebase, which tokenized real estate on the blockchain.

However, Solana faced challenges earlier in 2025, including a 60% price drop from its January peak of $295, driven by fading memecoin hype and the LIBRA scandal. The recent recovery, supported by technical upgrades and institutional backing, suggests Solana is regaining its footing.

Expert Insights

Anatoly Yakovenko, Solana Labs CEO, emphasized the network’s focus on decentralization: “Our goal is to make Solana the world’s most censorship-resistant blockchain, and mechanisms like correlated slashing will ensure validator accountability.”

Raoul Pal, founder of Real Vision, remains bullish, predicting a potential 20x rally for Solana due to its “advanced blockchain technology and growing ecosystem.” However, some analysts caution that Solana’s high staking returns (8.31% vs. Ethereum’s 2.98%) may divert capital from DeFi, potentially stifling innovation. Tushar Jain of Multicoin Capital noted, “It’s not rational to invest in DeFi when staking offers a risk-free return.”

Visual Element: Solana’s TVL Growth

A line chart illustrating Solana’s TVL growth from January to April 2025 would enhance understanding. The chart could compare Solana’s $7.08 billion TVL to competitors like Ethereum ($31 billion) and BNB Chain ($6.1 billion), highlighting its rapid recovery post-LIBRA scandal. Data from DefiLlama would provide a credible source for this visual.

Analysis: Opportunities and Challenges

The ETF launch and liquidity surge signal Solana’s growing appeal to institutional and retail investors. The ETF could pave the way for similar products in the U.S., where firms like VanEck and 21Shares have filed applications, though approvals remain pending. Solana’s dominance in DEX volumes ($15.8 billion in a week, surpassing Ethereum’s scaling solutions) underscores its strength in trading activity.

However, challenges persist. Technical indicators, such as a bearish divergence in the Relative Strength Index (RSI), suggest SOL’s price may struggle to sustain gains above $130. Competition from Ethereum, Avalanche, and Cardano, which are also advancing their scalability, could threaten Solana’s market share. Additionally, reliance on memecoin hype raises questions about long-term sustainability.

Conclusion

Solana’s recent network surge and ETF launch mark a pivotal moment for the blockchain, reinforcing its position as a leader in DeFi and high-speed transactions. With institutional backing, technological upgrades, and a vibrant ecosystem, Solana is well-poised for growth. However, overcoming technical resistance, addressing DeFi stagnation, and navigating competitive pressures will be critical to sustaining this momentum. As Solana approaches key price levels like $180, the crypto community will be watching closely to see if it can reclaim its January highs—or chart a new path forward.

By Ragini Mathur

(Reuters) -Canada’s main stock index rose on Wednesday, with technology shares leading the charge, as investors welcomed U.S. President Donald Trump’s assurance that he would not fire Federal Reserve Chairman Jerome Powell.

The Toronto Stock Exchange’s S&P/TSX Composite Index climbed 1% to 24,535.52 points, its highest level since April 3.

Markets this week have grappled with worries about the Fed’s autonomy, as Trump intensified his criticism of Chairman Powell for maintaining current interest rates despite Trump’s vocal demands for cuts.

“Markets are not being controlled by fundamentals for now,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

“It’s not based on fact, it’s primarily based on what comes out of the White House.”

Trump also said he wanted to reach a deal with China where tariffs would not be anywhere near 145%, adding that he would set the terms of a deal if Beijing did not enter talks.

Ten of the eleven major sectors on TSX gained on Wednesday with information technology shares leading the rise, up 5.7%.

E-commerce giant Shopify and electronics manufacturing services company Celestica were among the best performers on TSX.

Metal mining was the only sector that traded in the red after gold prices dipped as worries about global trade tensions eased. The sector was down 2.4%.

Yet NovaGold Resources topped the benchmark index gains by rising 14.2% and extending its previous session’s rise on buying a stake in the Donlin gold project in Alaska from Barrick Gold.

Heavy-weight financials were up 2%.

Among individual stocks, Rogers Communications posted lower-than-expected quarterly subscriber additions on Wednesday, as the wireless giant grapples with a pricing war and strict immigration practices. Its shares, however, were up 2.8%.

Looking ahead, Friday’s Canadian retail sales figures will shed light on consumer spending trends as the country navigates economic uncertainty surrounding U.S. tariffs.

(Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed)