Solana Price Stalls Below $150: Bull Run in Jeopardy?
Solana’s token, SOL, experienced a quick 8% drop after hitting $147 on March 25. For the last three weeks, it’s been tough for SOL to get back above $150, making traders wonder if the earlier excitement, fueled by memecoins and AI hype, is fading out.
Looking ahead, some analysts think SOL could get a boost if a Solana spot ETF gets approved in the US. They also point to the growth of real-world assets (RWAs) on Solana, like stablecoins and money market funds, as potential positives.
Then there are voices like Nikita Bier, a co-founder of TBH and Gas, who believes Solana’s set up well for a “breakout on mobile.”
Source: nikitabier
Bier points to Donald Trump’s relatively relaxed regulatory stance and the lasting impact of the memecoin boom. He argues this frenzy brought “millions” of fresh faces to Web3 wallets and decentralized apps (DApps). Essentially, Bier’s bullish on Solana because he sees it as user-friendly, especially for mobile.
Bitcoin Reserve News Dampens Crypto Spirits
Even with the potential for Solana becoming a go-to spot for everyday DApps, most traders felt the pain as the memecoin craze cooled off and onchain activity slowed. This drop in activity has investors wondering if SOL can really climb back above $150. And it’s not just DApp interest – Solana’s also seeing more competition from other blockchains.
Adding to the negative vibes, some investors were disappointed to learn the US government wouldn’t be buying altcoins for its strategic reserve or digital asset stash.
On March 6th, President Trump signed legislation allowing the US Treasury to explore ways to acquire Bitcoin using budget-neutral approaches
. Interestingly, the order also suggested the government might strategically sell off any altcoins it already held. Notably, the Digital Asset Stockpile executive order didn’t mention Solana or any other specific altcoin.
Now, some might argue Solana’s got more to it than just memecoins and token launches. After all, the total value locked (TVL) in Solana DeFi is growing in areas like staking, lending, and synthetic assets.
However, it’s hard to ignore that Solana’s transaction fees and DApp revenue are still trending downwards. Lower onchain activity often makes SOL look less attractive to investors, which can hold back price growth.
Solana 7-day DApp revenues (left) and chain fees (right), USD. Source: DefiLlama
Looking at the numbers, Solana DApp revenues were $12 million in the week leading up to March 24th, a drop from $23.7 million just two weeks prior. Similarly, base layer fees fell to $3.6 million from $6.6 million in the week ending March 10th. What’s interesting is this drop happened even though the total value locked (TVL) in Solana stayed steady at 53.2 million SOL.
Related: Specialized purpose DEXs poised for growth in 2025 — Curve founder
Solana Loses Top Spot in DEX Trading Volumes
The dip in Solana’s onchain activity is especially worrying because BNB Chain has now taken the lead in DEX trading volume. And get this – BNB Chain actually has 34% *less* total value locked than Solana, according to DefiLlama.
Decentralized exchanges volume market share. Source: DefiLlama
Looking at DEX trading volume specifically, Solana was the king from October ’24 to February ’25. But recently, Ethereum and BNB Chain have caught up and even surpassed it. This shift in DEX volume is likely contributing to SOL’s recent price struggles. For example, trading volume on Hyperliquid jumped 35% in the last week, and Pendle saw a massive 186% surge!
Even though the current data doesn’t point to a quick price jump back above $150, Solana still has some unique advantages. It blends a smooth user experience with a decent level of decentralization, which has worked well for it. Think about it – while chains like BNB Chain and Tron offer similar speed, neither has had a wallet or DApp hit the top 10 on the Apple App Store like Solana’s Phantom Wallet did in November 2024.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
