Important points:
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Solana’s strong on-chain metrics and DApps revenue dominance suggest long-term strength despite recent selling pressure from large holders.
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Solana ETF inflows and diversified on-chain activity are supporting SOL, but macro risks in AI and trade remain key obstacles to a $250 recovery.
Solana’s native token, SOL (SOL), fell 6% after hitting $172 on Monday. The decline largely reflected a decline in the Nasdaq index, which was weighed down by Coreweave (CRVW US)’s downward revision to its cloud services revenue forecast and reports that China plans to bar the U.S. military from accessing rare earth minerals. Is there a chance for SOL to regain the $250 level in the near term?
SOL has underperformed the altcoin market by 7% over the past two weeks, but there is no clear trigger for the decline. In fact, the backdrop is quite positive, including the debut of the Solana Spot Exchange Traded Fund (ETF) in the US and a notable increase in Solana’s on-chain activity.
Over the past 30 days, network activity on Solana has spiked, with active addresses increasing by 10% and transactions increasing by 8%. By comparison, Ethereum saw a 5% decrease in active addresses and a 26% decrease in transactions during the same period. Hyperliquid, an emerging competitor in the decentralized exchange (DEX) space, also saw a 28% decline in on-chain activity.
Solana continues to dominate decentralized applications (DApps) revenue. No other network can match this, giving Solana a lasting competitive edge. These DApps reward their users by sharing a portion of their revenue as revenue. This is a mechanism that helps the network attract more deposits and strengthen its position.
Solana’s growth indicates stronger diversification across multiple sectors
Solana’s total value locked (TVL) is currently $12 billion, widening the gap with BNB Chain, which holds $8 billion. Over the past 30 days, several projects have posted strong gains, including a 35% increase in Securitize (real-world assets), a 31% increase in Solstice USX (basis trading), and a 10% increase in deposits in Meteora (liquidity pool). This data suggests that Solana’s growth is becoming more diversified and less reliant on a single sector.
Memecoin launches and trading activity once drove Solana’s user growth and network fees, but that momentum waned by March. The token has since recovered from its 2025 low of $95, but traders remain wary of a short-term bull market.
Since debuting on the U.S. market on October 28, the Spot Solana ETF has had net inflows of $343 million. Meanwhile, the REX Osprey SOL + Staking ETF accumulated an additional $286 million in assets. However, the overall positive effect of these products is partially offset by outflows from companies reducing their SOL holdings.
The sale of 439,621 SOL by Galaxy Digital Holdings (GLXY) has raised concerns about the sustainability of Solana’s corporate reserves strategy. According to CoinGecko data, Forward Industries (FORD) occupies the largest position with 6.82 million SOL, and this figure has remained stable for the past 30 days.
Related: SOL’s Next Stop Could Be at $300 –3 Force Forms Solana’s Next Big Rally
Bolstered by Solana’s steady growth in on-chain activity and overwhelming dominance in DApps revenue, SOL remains likely to outperform the broader altcoin market. However, the path to $250 is likely to depend on the decline in risks surrounding the artificial intelligence sector and the easing of geopolitical tensions related to the ongoing global trade war.
This article is for general informational purposes only and is not intended to be, and should not be taken as, legal or investment advice. The views, ideas, and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.