Whales flee Solana: What’s next?

August 06, 2025

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From Italy to a Nasdaq Reservation

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Hyperliquid steals the spotlight as Solana faces whale exodus, treasury tug-of-war

Key points:

  • Hyperliquid captured 35% of July’s blockchain revenue as open interest surged to $15.3B and its HYPE token hit a record high.

  • Meanwhile, Solana’s record on-chain activity has not stopped whales from offloading over $70M in SOL amid rising competition and roadmap delays.

News - Hyperliquid has emerged as a dominant force in DeFi after claiming 35% of all blockchain revenue in July, according to VanEck. Its simple yet powerful decentralized derivatives platform drew volume away from competitors, most notably Solana. Open interest on Hyperliquid soared to $15.3 billion, marking a 369% jump year-to-date, while USDC inflows reached $5.1 billion ahead of upcoming integrations.

Analysts attribute this meteoric rise to Hyperliquid’s seamless perpetuals product, which has become a preferred venue for high-value users. The upcoming HIP-3 upgrade is expected to accelerate this trend by turning Hyperliquid into a broader Web3 infrastructure layer for DeFi apps. However, a recent API outage raised concerns around network scalability and risk management.

Solana’s mixed bag: Metrics up, confidence down - Despite hitting an all-time high in true TPS and reaching its best TVL levels in native SOL terms in over three years, Solana is seeing rising sell pressure. Whales such as Galaxy Digital and others have unstaked and moved over $70 million worth of SOL to Binance. One whale, after four years of staking, reportedly transferred $30 million over the past few months.

At the same time, SOL is down 30% year-to-date, lagging major assets like BTC and ETH. Much of the decline is being linked to ongoing delays in Solana’s roadmap, particularly setbacks in launching the Firedancer upgrade. Analysts at VanEck suggest this technical uncertainty is pushing whales to rotate into more reliable venues like Hyperliquid.

Firms bet big on Solana staking - Not all capital is fleeing Solana. Bit Mining, Upexi, and DeFi Development Corp have increased their SOL holdings, citing lucrative staking yields as the main driver. Upexi alone raised $200 million for SOL accumulation, now earning $65,000 a day in staking rewards. These strategic treasury moves signal a belief in long-term ecosystem growth despite short-term volatility.

SBI’s Bitcoin–XRP ETF bid could reshape Japan’s crypto landscape

Key points:

  • SBI Holdings has filed for Japan’s first Bitcoin–XRP dual ETF and a second product blending gold with crypto, pending regulatory approval.

  • The ETFs mark a strategic bet on XRP’s institutional future, while Ripple’s IPO prospects and SBI’s 9% equity stake add further market intrigue.

News - SBI Holdings is preparing to launch Japan’s first-ever crypto ETFs, signaling a bold push into regulated digital asset markets. The Tokyo-listed financial giant filed for two new products: a Crypto-Assets ETF offering direct exposure to both Bitcoin and XRP, and a Digital Gold Crypto ETF that allocates over 51% to physical gold and the remainder to the Franklin Bitcoin ETF.

If approved, these products would mark Japan’s entry into the global race for multi-asset crypto ETFs, with XRP at the forefront: a notable shift in a market long constrained by conservative financial regulation.

The move aligns with Japan’s ongoing crypto reforms. The Financial Services Agency (FSA) is currently considering a reclassification of crypto assets under the Financial Instruments and Exchange Act (FIEA), potentially clearing the way for more institutional offerings. While it’s still unclear if formal filings have reached the FSA, SBI’s pre-approval phase suggests regulatory talks are underway.

Why it matters for XRP - This development could expand XRP’s institutional footprint, especially following June’s greenlight of two spot XRP ETFs in Canada. With over 96% of wallets still in profit and price hovering near $2.96, XRP remains a key asset to watch, even as momentum indicators flash caution.

SBI’s close ties with Ripple add more depth to this play. The group holds a 9% equity stake and hinted at a potential IPO within two years, citing Ripple as a top portfolio driver. SBI also continues to integrate XRP into its remittance network and is exploring the RLUSD stablecoin.

Global stakes rising - While U.S. Bitcoin ETFs saw $196M in outflows this week, SBI’s dual-crypto ETF could offer global investors a fresh, Asia-based entry point, especially for those seeking exposure to both traditional and emerging digital markets.

SEC clears liquid staking: DeFi soars, critics roar

Key points:

  • LDO and RPL tokens rallied up to 10% after the SEC clarified that liquid staking protocols do not qualify as securities under U.S. law.

  • Industry leaders hailed the decision as a win for decentralized staking, though internal backlash from regulators sparked debate.

News - The U.S. Securities and Exchange Commission has issued long-awaited guidance affirming that certain liquid staking protocols, including Lido and Jito, do not fall under securities law. This regulatory clarity boosted governance tokens like LDO and RPL by 4.5% and 10.5%, respectively, and solidified a market already commanding $67 billion in total value locked.

The staff statement, published Tuesday, outlines that properly structured liquid staking arrangements, where users receive receipt tokens like stETH or jitoSOL, are not considered investment contracts. This shift is seen as a foundational green light for staking-based ETFs and new DeFi products.

Institutions eye on-ramp - Executives from Alluvial, Bitwise, and Jito Labs praised the SEC’s stance as a landmark moment for institutional adoption. Jito CEO Lucas Bruder said the nuanced understanding displayed mirrors conversations with the agency’s crypto task force earlier this year.

Mara Schmiedt of Alluvial added that the decision opens doors for new revenue streams and the emergence of secondary markets tied to staking receipts. According to DeFiLlama, Lido dominates the sector with over $31 billion locked, followed by Binance’s staking arm, which has nearly doubled its TVL to $11.4 billion since January.

Controversy within the commission - Not all regulators are on board. Former SEC Chief of Staff Amanda Fischer likened liquid staking to the rehypothecation practices that fueled the 2008 financial crisis. Her comments were met with sharp pushback from crypto leaders, including VanEck’s Matthew Sigel and Helius Labs CEO Mert Mumtaz.

While Commissioner Hester Peirce supported the move, fellow Commissioner Caroline Crenshaw criticized the guidance for offering insufficient clarity. Despite this split, the ruling has energized both retail and institutional players looking to tap into yield opportunities without custodial risks.

Staking’s future looks liquid - With the SEC’s position now public, developers and ETF issuers alike are likely to accelerate their integration of liquid staking models. Analysts suggest this could be the final puzzle piece for staking features in ETH and SOL spot ETFs, as regulators catch up with DeFi innovation.

OpenAI’s $500B ambition faces biometric blowback from China

Key points:

  • OpenAI is seeking a $500 billion valuation via a secondary share sale, amid surging demand and expansion into hardware and GPT-5 development.

  • At the same time, China’s Ministry of State Security has issued a strong warning against iris-scanning crypto projects, spotlighting Worldcoin and its ties to OpenAI CEO Sam Altman.

News - OpenAI is reportedly pursuing a $500 billion valuation through a secondary share sale for current and former employees, marking a 66% jump from its previous $300 billion valuation. The move follows the firm’s $8.3 billion fundraising haul in the second tranche of a $40 billion round and growing excitement around GPT-5 and Jony Ive’s AI hardware venture.

But as global interest in AI accelerates, OpenAI’s close ties to Worldcoin are drawing increasing scrutiny. China’s Ministry of State Security (MSS) issued a public security bulletin this week warning that foreign crypto firms collecting iris data in exchange for digital assets pose a threat to national security. The statement, though not naming Worldcoin directly, closely matches the biometric practices of the Altman-backed project now rebranded as World.

Beijing’s biometric alarm - The MSS specifically cautioned against the misuse of iris scans and facial data, describing them as irreversible and potentially exploitable by foreign intelligence operations. It cited the transfer of sensitive data overseas as a major concern, alongside the growing threat of deepfakes created from leaked biometric identifiers.

The crackdown follows similar regulatory pressure from countries like Kenya, Indonesia, Germany, and France, where Worldcoin has faced accusations of weak data protections and uninformed consent practices.

Altman’s dual role raises eyebrows - While OpenAI is not involved in token issuance, Sam Altman’s central role in both OpenAI and Worldcoin has sparked global conversations about privacy, data sovereignty, and the ethics of identity-linked AI systems. The debate has only intensified as OpenAI’s market power grows, and China doubles down on guarding against foreign influence through digital surveillance vectors.

As Worldcoin’s WLD token slipped by over 2% to $0.93 on CoinGecko, Ethereum co-founder Vitalik Buterin revived the call for pluralistic digital ID systems. He warned against one-size-fits-all identity models, arguing they risk undermining pseudonymity and empowering centralized control.

Did you know?

  • The U.S. 2025 GENIUS Act mandates every stablecoin issuer to back their tokens fully with liquid assets at a 1:1 ratio, and require regular audits, marking the first comprehensive federal stablecoin law in U.S. history.

  • The SEC’s “Project Crypto” initiative, launched in late July 2025 by SEC Chair Paul Atkins, marks a major regulatory pivot, clearing the way for a return of regulated ICOs, tokenized securities, and on‑chain trading inside U.S. markets.

  • Hyperliquid (HYPE) has been the best-performing major crypto YTD in 2025, gaining nearly 83% so far, outpacing Monero, XRP, and Bitcoin.

Top 3 coins of the day

PancakeSwap (CAKE)

Key points:

  • CAKE changed hands at $2.62 after rising 2.38% in the past 24 hours, bouncing back slightly from its recent correction.

  • The Supertrend continued to flash a buy signal, while the DMI showed that +DI stayed above -DI, though the ADX flattened near 28, signaling a pause in trend strength.

What you should know:

PancakeSwap saw a modest rebound following its failed attempt to breach the $2.95 resistance on July 31. After retreating to the $2.55 support zone, the price stabilized, although volume remained subdued. The Directional Movement Index (DMI) reflected mixed signals: the +DI stayed above the -DI, but the ADX leveled off around 28, suggesting a cooling trend without confirming reversal. Meanwhile, the Supertrend indicator still signaled a bullish stance, though just above its trailing stop at $2.59. Despite PancakeSwap recording $188B in July DEX volume, the recent price drop hinted at profit-taking and increased competition from derivatives platforms. A series of ecosystem AMAs between August 5–7 may draw renewed interest, though CAKE needs stronger follow-through to reclaim higher levels. The $2.55 zone remains a key level to defend. If reclaimed convincingly, $2.67 becomes the next resistance to monitor. However, a drop below support could shift sentiment bearish again.

BNB (BNB)

Key points:

  • BNB was valued at $761 at press time, climbing 0.81% in 24 hours after rebounding from local lows near $746.

  • The price remained below the 9-day SMA, while RSI hovered near neutral at 53, signaling cautious optimism.

What you should know:

BNB attempted to stabilize after its recent correction from a $860 peak. Though the price made a slight recovery, it stayed under the 9-day Simple Moving Average (SMA), reflecting near-term resistance. The Relative Strength Index (RSI) held just above the midpoint, while volume stayed modest despite last week's coordinated surge. The recent uptick came amid bullish developments across Binance’s ecosystem. New features like the web version of Binance Wallet and expanded Bitcoin options access have reduced trading friction. More notably, multiple U.S.-listed firms, including Nano Labs and Windtree Therapeutics, announced hundreds of millions in BNB-linked treasury strategies, amplifying long-term confidence in the asset. From a structural view, BNB is attempting to hold a higher low around $745. The $767 level remains an immediate resistance to reclaim for bullish continuation. A break past this could open the path back to $800, while a drop below $745 may invite further downside pressure.

TRON (TRX)

Key points:

  • TRX traded at $0.334, gaining 0.30% over the past day and sustaining its position near the top of its 30-day rally.

  • The Parabolic SAR remained below the price, indicating bullish pressure, while the MACD lines hovered flat with a weakening histogram.

What you should know:

TRON’s slow grind upward continued despite long-term holders realizing $1.4B in profits on August 5, one of the highest daily cash-outs of the year. The price held firm near $0.335, reflecting strong demand absorption and minimal downside slippage. Trading volume remained elevated, and the Parabolic SAR continued to trail below candles, supporting bullish structure. However, the MACD histogram has started fading, suggesting momentum may be cooling. Beyond the charts, TRON’s dominance in USDT transactions has further anchored its utility. With over 60% of global USDT volume routed through its network and new product integrations (e.g., MoonPay wallet, Nasdaq’s SRM Entertainment pivot), demand for TRX gas fees remains strong. A breakout above $0.334 would confirm bullish continuation toward $0.355. Alternatively, a move below $0.317 could shift sentiment. For now, the price remains range-bound but resilient.

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