Key Takeaways
- Solana’s robust onchain metrics and leading DApp revenue suggest long-term resilience, even with recent selling pressure from significant holders.
- Positive inflows into Solana ETFs and diverse onchain activity offer support, but broader macroeconomic risks in AI and trade pose challenges to immediate price recovery.
Solana’s native token, SOL, recently experienced a 6% decline, dipping below $172. This movement closely mirrored a broader pullback in the Nasdaq Index, which was influenced by revised cloud services revenue forecasts from CoreWeave and reports of potential Chinese restrictions on U.S. military access to rare-earth minerals. The key question remains: can SOL reclaim the $250 price level in the near future?
Solana’s Recent Performance and Onchain Activity
Over the past two weeks, SOL has seen underperformance relative to the broader altcoin market by approximately 7%, with no single clear catalyst identified for this trend. This comes despite several positive developments, including the launch of a Solana spot exchange-traded fund (ETF) in the United States and a notable increase in Solana’s onchain activity.
In the last 30 days, Solana has demonstrated a significant surge in network activity. Active addresses have increased by 10%, and transactions have risen by 8%. In comparison, Ethereum experienced a 5% decrease in active addresses and a substantial 26% drop in transactions during the same period. Even Hyperliquid, a prominent player in the decentralized exchange (DEX) sector, saw a 28% decline in its onchain activity.
💡 Solana continues to lead the market in decentralized applications (DApps) revenue, with no other network coming close. This dominant position provides Solana with a sustainable competitive advantage. Furthermore, many of these DApps reward users by distributing a portion of their earnings as yield, a strategy that attracts increased deposits and strengthens the network’s overall standing.
Diversified Growth Across Solana’s Ecosystem
The total value locked (TVL) on the Solana network currently stands at $12 billion, extending its lead over BNB Chain, which holds approximately $8 billion. Several projects within the Solana ecosystem have shown strong performance over the past 30 days. Notably, Securitize (Real World Assets) saw a 35% increase, Solstice USX (Basis Trading) rose by 31%, and deposits on Meteora (Liquidity Pools) grew by 10%. This data indicates that Solana’s growth is becoming more diversified, diminishing its reliance on any single sector.
Historically, memecoin launches and associated trading activity were primary drivers of user growth and network fees on Solana. However, this momentum began to wane around March. Although the token has recovered significantly from its 2025 low of $95, traders are exercising caution regarding its immediate upside potential.
📊 Since their introduction to U.S. markets on October 28, spot Solana ETFs have attracted substantial net inflows totaling $343 million. The REX–Osprey SOL + Staking ETF has further added approximately $286 million in assets. Despite these positive indicators, the overall impact has been partially counteracted by outflows from entities reducing their SOL holdings.
The recent sale of 439,621 SOL by Galaxy Digital Holdings has raised questions about the long-term viability of Solana’s corporate reserve strategy. According to CoinGecko data, Forward Industries maintains the largest position, holding 6.82 million SOL, a quantity that has remained consistent over the last 30 days.
Market Outlook and Potential Challenges
The fundamental indicators, including consistent growth in onchain activity and dominance in DApp revenue, suggest that SOL is well-positioned to outperform the broader altcoin market. However, the path towards a $250 price target is likely contingent on a reduction in macroeconomic risks associated with the artificial intelligence sector and a de-escalation of geopolitical tensions stemming from current global trade dynamics.
Expert Summary
Solana exhibits strong fundamentals with increasing network activity and leading DApp revenue, providing a solid foundation for potential growth. While institutional interest through ETFs is a positive sign, broader market risks and selling pressure from major holders present near-term challenges to significant price appreciation.
