Solana Shows Resilience Following Major Exchange Security Breach

As December 2025 begins, Solana demonstrates renewed strength after a significant security incident at one of its major trading venues. Upbit, South Korea’s dominant cryptocurrency exchange, has restored full operational capabilities after temporarily suspending services due to a substantial hack. The event raises important questions about investor confidence recovery and the actual impact of the $36.8 million loss on the network’s overall health.

Exchange Operations Resume With Full User Protection

Trading activities at Upbit resumed in phases starting at 1:00 PM Korean Standard Time on Monday, December 1. The platform had suspended operations on November 27 following a security breach that resulted in the theft of approximately $36.8 million in Solana-based digital assets. The compromised funds included SOL, JUP, and RAY tokens taken directly from the exchange’s hot wallets.

In a significant move to maintain trust, Upbit has committed to covering all user losses from its corporate reserves. The restoration of trading services is particularly crucial for the Korean won trading pairs, which historically account for a substantial portion of Solana’s overall trading volume. Market participants are closely monitoring whether this incident will have lasting effects on confidence in both the exchange and the Solana ecosystem.

Institutional Investment Patterns Show Mixed Signals

The institutional landscape presents a complex picture for Solana. The Bitwise Solana Staking ETF (BSOL) maintains its dominant position in the Solana ETF space with cumulative inflows reaching approximately $527.9 million. However, following an impressive streak of 21 consecutive days with positive inflows—including several days exceeding $30 million—the fund recorded zero inflows on Friday, November 28.

Should investors sell immediately? Or is it worth buying Solana?

This pause in institutional investment could indicate profit-taking behavior or a cautious approach following the Upbit security incident. Meanwhile, Franklin Templeton has demonstrated continued confidence in the network by including Solana in its crypto index ETF starting December 1, signaling a positive long-term outlook from the established asset manager.

Network Performance Remains Impressively Stable

Beyond the headlines surrounding the security breach, Solana continues to demonstrate robust fundamental performance. The network has achieved a remarkable milestone of 662 consecutive days without downtime, providing the reliability required by institutional partners like Visa and PayPal, which are currently utilizing Solana for settlement pilot programs.

Key on-chain metrics reflect strong network health:

• Total Value Locked (TVL): Maintaining a solid range between $10.8 and $11.5 billion, showing only modest declines from third-quarter peaks
• Daily Active Addresses: Consistently ranging between 2.1 and 2.5 million, indicating that practical usage across DeFi, payments, and consumer applications remains decoupled from short-term price volatility
• DEX Volume: Exceeding $3 billion over a 24-hour period, with stablecoins like USDC driving 62-76% of total transaction volume

Technical Analysis Points to Critical Price Levels

SOL’s price action currently shows consolidation above the crucial $130 support level, following a failed attempt to break through the $144 resistance zone in late November. Traders are closely monitoring these technical levels, as a breakdown below support could trigger additional selling pressure, while a successful breach of resistance might pave the way for new highs. The central question remains whether Solana has fully absorbed the impact of the Upbit incident or faces an extended period of market consolidation.