Solana’s intrinsic token, SOL (SOL), experienced a sharp 8% decline after momentarily reaching $147 on March 25. Over the last three weeks, SOL has encountered difficulties in regaining the $150 threshold, prompting traders to speculate whether the bullish momentum, initially fueled by memecoin speculation and advancements in artificial intelligence sectors, has concluded.
Certain analysts contend that SOL prices could greatly benefit from the anticipated approval of a Solana spot exchange-traded fund (ETF) in the United States, alongside the growth of tokenized real-world assets (RWA) on the Solana network, which includes stablecoins and money market funds.
Others, such as Nikita Bier, co-founder of TBH and Gas startups, assert that Solana possesses “the fundamental building blocks for something to emerge on mobile.”
Bier underscored the positive regulatory climate stemming from US President Donald Trump and the long-lasting effects of the memecoin phenomenon, which brought “millions” of new users into Web3 wallets and decentralized applications (DApps). Essentially, Nikita Bier believes Solana is advantageous due to its efficient onboarding process for mobile users.
The uninspiring Bitcoin reserve announcement affected all cryptocurrencies
In spite of the prospects for creating a “consumer-grade” marketplace for DApps, most traders experienced losses as the memecoin excitement dwindled and onchain volumes fell. This downturn has led investors to question if SOL can muster the strength to surpass the $150 mark. Beyond the diminishing interest in DApps, Solana is also contending with increasing competition from other blockchains.
Moreover, the realization that the US government would not acquire altcoins for its strategic reserve and digital asset cache was a significant letdown for several investors. On March 6, President Trump ratified a bill permitting budget-neutral strategies for the US Treasury to procure Bitcoin (BTC), while altcoins in government possession could be prudently sold. Notably, there was no specific reference to Solana or any other altcoin in the Digital Asset Stockpile executive order.
Some may contend that the Solana ecosystem extends well beyond memecoin trading and token launchpads, as total value locked (TVL) has surged across liquid staking, collateralized lending, synthetic assets, and yield platforms. However, Solana’s fees and DApp income have continued to decline. Diminished onchain activity lowers SOL’s attractiveness to investors, thereby constraining its potential for growth.
Solana DApp revenues amounted to $12 million in the week preceding March 24, a decrease from $23.7 million just two weeks prior. Similarly, base layer fees totaled $3.6 million during the same timeframe, a substantial decline from $6.6 million in the week ending March 10. Interestingly, this drop occurred while the total value locked (TVL) remained stable at 53.2 million SOL.
Related: Specialized purpose DEXs poised for growth in 2025 — Curve founder
Solana is no longer the leading network in DEX volumes
The decline in Sol’s onchain activity is especially troubling given that BNB Chain ascended to the leading position in DEX volumes, despite having 34% lower TVL than Solana, according to DefiLlama data.
Concerning volume, Solana maintained a stronghold over the DEX sector from October 2024 to February 2025 but has recently ceded ground to Ethereum and BNB Chain. Consequently, part of SOL’s price weakness can be traced back to a reduction in Solana’s onchain activity relative to its rivals. For instance, trading volume on Hyperliquid grew by 35% over the past week, while activity on Pendle skyrocketed by an impressive 186%.
While fundamentals do not suggest an impending rise above $150, the Solana network uniquely integrates a user-friendly experience with a level of decentralization that has proved effective. For example, even though BNB Chain and Tron offer comparable scalability, neither has had a wallet or DApp ranked among the top 10 on the Apple App Store—unlike Solana’s Phantom Wallet in November 2024.
This article is for general informational purposes and is not intended to be and should not be construed as legal or investment advice. The perspectives, beliefs, and opinions expressed herein are solely those of the author and do not necessarily mirror or represent the views and opinions of Cointelegraph.
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