SAPIEN Overview

Visa's New Initiative: Visa has launched a Stablecoins Advisory Practice to help banks and businesses develop stablecoin strategies, enhancing digital payment technologies and strategies.

Impact on Financial Sector: This initiative aims to improve transaction efficiency and reduce costs in global financial operations, highlighting the importance of stablecoin integration in traditional financial services.

Client Engagement: Early clients of this advisory service include Navy Federal Credit Union and Pathward, indicating a growing interest in stablecoin adoption among financial institutions.

Regulatory Influence: Visa's advisory model may influence regulatory approaches to stablecoins, encouraging policymakers to adapt to these innovations in the digital finance landscape.

Digital Asset ETP Inflows: Digital asset exchange-traded products (ETPs) experienced significant inflows of $716 million in the past week, raising total assets under management to $180 billion, indicating growing investor confidence in cryptocurrencies.

Bitcoin and Ethereum Performance: Bitcoin led the inflows with $552 million, while Ethereum attracted $338 million, reflecting strong interest from both institutional and retail investors in these leading cryptocurrencies.

Interest in XRP and Chainlink: XRP and Chainlink also saw notable inflows of $245 million and $52.8 million, respectively, driven by their real-world applications and increasing utility in blockchain networks.

Outflows from Hyperliquid: Despite the overall positive trend, Hyperliquid faced outflows of $14.1 million, suggesting a selective investor appetite within the digital asset ETP market.

Institutional Interest in Solana: Solana is experiencing strong institutional interest, with the Bitwise Investment spot ETF recording 33 consecutive days of net inflows, totaling $608.9 million, and assets under management nearing $928 million.

Comparative ETF Performance: While Solana ETFs added $33.6 million in net inflows, Bitcoin and Ethereum ETFs attracted $287 million and $209 million respectively, indicating Solana's growing institutional allocation despite lower absolute flows.

Price and Market Structure: Solana's price is currently at $132.54, with a daily gain of 1.08%, but down 4.25% over the past week. The $120 level is identified as a critical support zone, with traders closely monitoring it for potential market shifts.

Decline in Network Participation: On-chain activity shows a significant decline in active Solana traders, with active wallets dropping from 4.8 million to approximately 624,000, marking an 87% reduction from peak levels since January.