Solana News Update: DeFi Capital Shifts Focus to Performance-Oriented Projects Amid Intensifying Bearish Trends for Solana

Solana Faces Persistent Downward Pressure

Solana (SOL) is encountering significant selling momentum as it struggles to surpass the $130 mark. Technical signals and overall market trends point toward a possible drop to the $100 level. Currently, SOL is trading beneath its major exponential moving averages—the 50-day, 100-day, and 200-day—all of which are trending lower and reinforcing a negative outlook.

Although the Moving Average Convergence Divergence (MACD) indicator shows slight positive movement near the zero line, this is outweighed by the Relative Strength Index (RSI), which sits at 32. This low RSI reading suggests the token is oversold, but there is not enough buying strength to push prices above short-term averages. If SOL falls below $140, it could confirm a bear flag formation, potentially setting the stage for a further decline toward $99.

Institutional Activity and Market Sentiment

Even as Solana-based ETFs have attracted $11 million in weekly investments and accumulated $510 million in total net inflows, the overall market remains wary. Open Interest in Solana futures has dropped sharply—from a peak of $17.1 billion on September 19 to $6.95 billion—indicating a reduction in speculative trading. This contrast between ETF inflows and weakening derivatives activity reveals mixed investor sentiment, with institutional buying unable to counteract broader selling pressure.

Mutuum Finance Gains Momentum

While Solana faces these challenges, Mutuum Finance (MUTM), a new DeFi initiative, is attracting attention in the ecosystem. The project has already secured $19 million in funding. Mutuum’s innovative lending and borrowing platform, which integrates both Peer-to-Contract and Peer-to-Peer models, has drawn consistent participation. A daily leaderboard rewards top contributors with $500 every 24 hours.

Confidence in Mutuum is further supported by security audits from CertiK and Halborn Security, as well as plans to expand to Layer-2 solutions and introduce a stablecoin. These factors have helped build trust among early investors.

Investor Interest in Mutuum Finance

Mutuum allocates 45.5% of its total 4 billion token supply to public sales, with 800 million tokens already distributed. The project’s roadmap includes launching a Sepolia testnet in Q4 2025. This surge in demand stands in stark contrast to Solana’s bearish technical signals, as investors increasingly favor projects with real-world applications and active development.

Shifting Trends in DeFi Investment

The growing interest in Mutuum highlights a broader movement within DeFi, where projects with operational platforms and strong security protocols are outperforming more speculative assets. With Solana approaching a “death cross”—a bearish technical pattern—and ETF inflows unable to halt its downward trend, capital is being redirected toward ventures with clear execution strategies and tangible progress.