Solana's ecosystem is experiencing a significant institutional breakout, driven by explosive growth in its Real-World Asset (RWA) sector. Distributed value for RWAs on Solana climbed to approximately $1.7 billion by February 23rd, marking a substantial 46% monthly surge. This growth rate dramatically outpaces the broader RWA sector's 7% expansion to $25.07 billion, indicating Solana is capturing significant market share.
The expansion is characterized as a product-led acceleration, anchored by strong demand for tokenized treasury instruments. These products, offering yields of 3–4% APY, command about 49% of Solana's RWA value, equivalent to roughly $833 million. Key instruments driving inflows include BlackRock's BUIDL ($552.6 million) and Ondo Finance's USDY ($179.4 million). Private credit pools, such as those linked to Credix, have also scaled to $330.4 million, adding further momentum.
This growth is supplemented by capital rotations from other chains, notably Ethereum, with Solana contributing roughly a third of the sector's net increase by adding about $0.54 billion. The deepening capital formation is strengthening on-chain liquidity and trading depth. Parallel metrics show robust network activity, with stablecoin transfer volume on Solana reaching $1.39 trillion over 30 days (up 252.59% month-over-month) and RWA transfer volume near $2.00 billion.
Analysts are also monitoring Solana's price action amidst this fundamental growth. SOL is currently holding above key chart support near $68, with analysts mapping a potential ABC corrective rally. A critical level to watch is $61.64, identified as the key level to keep a labeled wave 4 structure intact for a potential rebound.
