Solana’s Contradiction: Network Activity Soars as Token Price Tests Critical Support

While Solana’s native token trades perilously close to its lowest point in a year, the underlying blockchain is experiencing unprecedented usage. This stark divergence between price action and fundamental network strength is creating a complex landscape for investors.

Price Action Nears a Breaking Point

From a technical perspective, Solana is navigating a precarious zone. Currently priced at $120.09, the asset is hovering just above its 52-week low of $119.47, recorded in mid-December. This represents a decline of approximately 49% from its peak last October. Although a Relative Strength Index (RSI) reading of 40 suggests selling pressure may be easing, a definitive price floor has yet to be established. A sustained break below the crucial $120 support level could trigger further downward momentum.

Unmatched Growth in Decentralized Trading

This price weakness stands in sharp contrast to Solana’s operational metrics, which tell a story of remarkable adoption. The network has solidified its dominance in decentralized exchange (DEX) trading, processing over $1.4 trillion in volume so far in 2025. At times, its share of the global decentralized trading market has reached 30%.

Platforms within the ecosystem, including Jupiter and Raydium, have occasionally surpassed the spot trading volumes of centralized giants like Coinbase. This traction is attributed to Solana’s high throughput and low transaction costs, which continue to attract users and developers. The network has already processed more than 34 billion transactions this year.

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

Institutional Validation and Ecosystem Revenue

Beyond retail trading, institutional interest provides another pillar of fundamental strength. Investment products focused on Solana have seen inflows nearing $700 million. Collaborations with traditional finance titans such as JPMorgan and BlackRock on tokenization projects signal growing acceptance of the technology within conventional finance.

Furthermore, the ecosystem’s vibrant activity, fueled by memecoins and non-fungible tokens (NFTs), generated substantial protocol revenue of $1.6 billion in the first half of the year.

The current situation presents a clear tension. Technically, holding the $120 zone is critical to stave off another wave of selling. However, the robust fundamental data, coupled with speculation around a potential exchange-traded fund (ETF) approval, suggests significant recovery potential remains—provided broader macroeconomic conditions and overall market sentiment become favorable.