Solana’s SOL Shows Signs of Strength Amid Price Decline
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Despite experiencing a significant decline, SOL, the native token of the Solana blockchain, presents an intriguing case for potential investors. Currently down approximately 72% from its peak value of $295, the question arises whether SOL is undervalued at its present trading level.
Since December 2025, the performance of Solana’s ETF has noticeably slowed. The token recently saw its price drop to about $86 after the launch of spot ETFs in October 2025, which initially attracted over $100 million in net inflows. However, inflows have moderated to between $20 million and $25 million weekly.
Interestingly, while SOL’s price has retracted, the blockchain’s on-chain metrics are thriving. Over the last month, Solana has recorded a decentralized exchange (DEX) trading volume of $108 billion, significantly overshadowing Ethereum’s $63.7 billion and Base’s $31.48 billion. January marked a peak for Solana, with processing volumes hitting $117 billion, illustrating a strong upward trend in network activity.
In a recent observation, analysts noted that Solana generated $3.1 million in application revenue within a 24-hour time frame, outpacing Ethereum’s $2.95 million. Furthermore, Solana boasts over 2 million active addresses compared to Ethereum’s approximately 680,000, indicating robust user engagement.
Additionally, the sector involving real-world assets (RWAs) is showing growth, with Solana climbing to a record high of $1.71 billion in this area, demonstrating a 45% increase in just a month. However, Ethereum remains dominant with $15 billion out of a total $25.37 billion in distributed asset value.
Market analysts are closely monitoring SOL’s price structure, particularly two critical areas that could signal a turnaround. The first is the Fibonacci retracement zone between $60 and $70, often seen as a pivotal point for potential recoveries. The second is a fair value gap between $22 and $29, which preceded SOL’s prior explosive rally.
Despite being under pressure, the SOL price has tested a key demand zone, which may provide a foundation for recovery. Current market data shows that 6% of SOL’s supply has transitioned within the current price range, suggesting a notable cost basis zone.
Overall, the juxtaposition of Solana’s solid on-chain activity and its current market valuation suggests that the token might currently be trading at a discount. The interplay between key price resistance levels and overall market dynamics in the coming months will likely dictate SOL’s recovery path.
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Gregory Russell
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