Over the past 7 days, the price of Solana’s native token, SOL, has experienced a significant drop of 7.22%, reaching $150.33 on June 17. This decline outpaced the broader cryptocurrency market, which saw a more modest decrease of around 1.5% over the same period. Factors contributing to this underperformance include increasing competition from Ethereum (ETH) and stagnant inflows into the Solana ecosystem.

The strengthening of Ethereum’s position, particularly in light of the potential regulatory approval of spot Ether exchange-traded funds (ETFs) in the U.S., has significantly bolstered the cryptocurrency’s market stance, diverting attention and investment away from Solana. Since May 20, when the U.S. Securities and Exchange Commission (SEC) began updating filings for Ether ETF applicants, the SOL/ETH pair has fallen by 22.65%.

Adding to the pressure on Solana, its market dominance has also declined. Since May 20, SOL’s market share has decreased from 3.30% to 2.82%, while Ethereum’s has increased from 15.78% to 18.04%. This shift indicates a growing preference for Ethereum among investors, which is further supported by recent investment trends.