SBF: Institutional Interest in Solana Rising as SOL and ADA See Strong Fund Inflows

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In recent weeks, Solana (SOL) has emerged as a top performer in the cryptocurrency market, drawing increasing attention from institutional investors. Sam Bankman-Fried (SBF), founder of the now-defunct FTX exchange, recently highlighted Solana’s growing appeal, citing its robust long-term vision and expanding ecosystem. According to SBF, Solana stands out among blockchains for its potential to serve as foundational infrastructure for the broader crypto industry—particularly amid rising interest in decentralized finance (DeFi) and non-fungible tokens (NFTs).

This surge in institutional interest isn’t just theoretical. Data from CoinShares reveals that during the week of August 15–22, digital asset investment products saw over $21 million in net inflows—with Solana capturing $7.1 million, the highest among all assets tracked, surpassing even Bitcoin (BTC) and Ethereum (ETH). Cardano (ADA) followed closely, signaling a shift in investor sentiment toward high-performance, scalable blockchains.

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Why Institutions Are Turning to Solana

Solana is frequently described as one of the few blockchains with a clear, scalable roadmap capable of supporting industrial-grade applications. With a throughput of up to 65,000 transactions per second (TPS) and average transaction fees under $0.0001, it offers performance far exceeding that of Ethereum—earning it the nickname “Ethereum killer.”

But speed and cost-efficiency alone don’t explain its growing appeal. SBF emphasized that Solana’s integration with projects like Pyth Network—a decentralized oracle delivering real-time financial data—has strengthened its position in DeFi. This partnership brings institutional-grade data on-chain, making Solana a viable platform for complex financial instruments.

Moreover, Solana’s ecosystem has expanded rapidly, hosting over 400 active projects spanning DeFi, NFTs, Web3 gaming, and decentralized identity. Its compatibility with modern development tools and low barrier to entry for developers further enhances its attractiveness to both startups and established financial players.

“Institutional interest is growing. Solana is one of the few blockchains with a compelling long-term blueprint,” SBF stated in a Bloomberg interview. “That means it could ultimately support industrial use cases across crypto.”

SOL and ADA Outpace BTC and ETH in Fund Inflows

The CoinShares report underscores a pivotal shift: altcoins like Solana and Cardano are now leading capital inflows once dominated by Bitcoin and Ethereum. While BTC still holds the largest market share, its dominance has dipped below 40%, reflecting increased diversification in institutional portfolios.

Solana accounted for over 33% of weekly inflows, outperforming major peers including Binance Coin (BNB) and Litecoin (LTC). Cardano also saw strong demand, aligning with comments from its founder, Charles Hoskinson, who expressed openness to collaboration between ADA and SOL ecosystems in areas like cross-chain interoperability, DeFi innovation, and sustainable staking models.

This trend suggests that institutions are no longer viewing crypto through a Bitcoin-or-bust lens. Instead, they’re evaluating blockchains based on technical merit, scalability, and real-world utility—metrics where Solana excels.

The SBF Ecosystem Rides the Solana Wave

SBF has long been a vocal supporter of Solana. His trading firm, Alameda Research, participated in Solana Labs’ $314 million fundraising round earlier in the year. This strategic backing has paid off handsomely—not just for Solana, but for the broader "SBF ecosystem" of projects built on or integrated with the network.

Serum (SRM), a decentralized exchange (DEX) launched by SBF’s team, saw its token spike to an all-time high of $13.71 amid the rally. Though it has since pulled back to around $12.41, the momentum reflects growing usage of Serum’s high-speed order book and cross-chain swap capabilities.

Other affiliated protocols have also gained traction:

These projects benefit directly from Solana’s scalability, enabling near-instant transactions at minimal cost—a critical advantage for user adoption.

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FAQ: Understanding Solana’s Institutional Appeal

Q: Why are institutions showing more interest in Solana now?
A: Institutions are attracted to Solana due to its high throughput, low fees, strong developer ecosystem, and partnerships with enterprise-grade projects like Pyth Network. These factors make it suitable for large-scale financial applications.

Q: How does Solana compare to Ethereum in terms of performance?
A: Solana processes up to 65,000 TPS with sub-second finality, compared to Ethereum’s 15–30 TPS pre-upgrades. Transaction costs on Solana are fractions of a cent, while Ethereum gas fees can spike during congestion.

Q: Did Cardano really outperform Bitcoin in fund inflows?
A: While ADA did not surpass BTC in total inflows, it came close to Solana during the reported week, indicating growing institutional confidence in alternative proof-of-stake blockchains with strong governance and research foundations.

Q: Is the SRM price surge sustainable?
A: Sustainability depends on continued adoption of Serum DEX and broader usage of its order book and limit order features. As Solana’s DeFi ecosystem grows, so does the utility—and potential value—of SRM.

Q: What role does Pyth Network play in Solana’s growth?
A: Pyth delivers real-time financial market data to Solana-based DeFi apps, enabling accurate pricing for derivatives, lending platforms, and synthetic assets—key for institutional participation.

Q: Are SOL and ADA replacing BTC and ETH?
A: Not replacing, but complementing. Investors are diversifying into high-growth altcoins while maintaining core holdings in BTC and ETH. This reflects maturation in the digital asset class.

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Conclusion: A New Era of Blockchain Competition

The narrative around cryptocurrency is evolving. No longer dominated solely by Bitcoin and Ethereum, the landscape is becoming increasingly competitive—with Solana and Cardano proving they can attract serious capital and developer momentum.

SBF’s endorsement carries weight, not just because of his past influence, but because it reflects a broader recognition: scalability, usability, and ecosystem strength matter more than ever. As institutions demand faster settlement, lower costs, and reliable data feeds, networks like Solana are well-positioned to lead.

With SOL’s price climbing over 400% in a single month—from $43 to nearly $200—and ADA showing parallel strength, the message is clear: the next phase of crypto adoption will be built on performance-driven blockchains capable of meeting real-world demands.