ARK Invest said Solana faces stronger competition in spot trading, derivatives, tokenized assets, prediction markets, and memecoins. Lorenzo Valente said Hyperliquid dominates derivatives, wh
Solana is losing momentum across several key crypto markets as competitors strengthen their positions, according to Ark Invest researcher Lorenzo Valente. In a detailed market assessment shared recently, Valente said the blockchain now faces increasing competition in spot trading, derivatives, tokenized assets, prediction markets, and memecoins, leaving the ecosystem searching for its next major growth catalyst.
According to Valente, Solana built its identity around fast trading and rapid price discovery. However, he said that position now faces pressure across several trading segments. Robinhood has gained market share in spot markets, while Uniswap has recovered ground.
Meanwhile, Valente said liquidity across Solana has become increasingly fragmented. He noted that proprietary AMMs, including BisonFi and Tessera, have emerged. However, Raydium and Orca no longer appear as competitive as before.
Valente also said concentrated-liquidity AMMs still hold most liquidity compared with RFQ systems and traditional order books. Attention then shifts to derivatives. Valente said Hyperliquid now dominates the market, while Drift's recent hack interrupted its progress.
He added that Bullet has yet to establish itself, while Phoenix remains active but trails leading platforms. According to Valente, most crypto derivatives activity now occurs on Hyperliquid and Lighter.
Valente also highlighted tokenized real-world assets as another challenge. He said Solana hosts roughly $1 billion of the nearly $30 billion tokenized RWA market, placing it outside the top three blockchains.
He added that tokenized stocks and related derivatives represent an important opportunity. However, he questioned whether Solana could gain meaningful share unless Tradexyz stumbles.
Meanwhile, prediction markets continue expanding elsewhere. Valente said activity remains concentrated on Kalshi and Polymarket rather than Solana.
Valente also pointed to changing investor dynamics. He said Multicoin Capital still supports Solana, although Kyle Samani no longer drives the firm's public investment narrative as before.
Despite those challenges, Valente praised teams including Backpack, led by Armani Ferrante, and buffalu with JTX. However, he said Solana has entered an engineering-focused phase centered on infrastructure improvements, rebuilding market structure, and developing new founders while seeking a breakout application to restore trading activity.
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