Key Points
- Solana’s network dominance has significantly dropped, with its price slipping to August lows around $156.
- Despite recent major milestones, Solana’s share of the Layer-1 transaction fee market has fallen to just 9%.
Solana’s price has plummeted to its August lows of around $156, following a significant decrease in its network dominance. This comes as traders shift towards newer high-activity chains such as Hyperliquid and BNB Chain.
According to data from DefiLlama, Solana’s portion of the Layer-1 transaction fee market has drastically dropped from over 50% at the beginning of the year to a mere 9% currently. Meanwhile, Hyperliquid and BNB Chain have gained more traction, capturing 40% and 20% of the market respectively, largely driven by derivatives trading volume and increased DeFi activity.
Despite Major Milestones, Momentum Slows
Over the past weekend, Solana celebrated several significant milestones. This includes the record-breaking debut of the Solana Staking ETF (BSOL) on the NYSE, the launch of the GSOL trust by Grayscale, and $284 million in Solana ETF inflows, according to data from SoSoValue.
Additionally, Visa and Shopify are continuing to integrate Solana’s high-speed payment infrastructure. Western Union’s decision to exclusively build stablecoin remittance rails on Solana also signals considerable fundamental strength.
Despite these achievements, Solana’s price has continued to decline along with the broader crypto market. The altcoin’s value has crashed by an enormous 32% in the past 30 days, falling to the 6th position in the market with a market cap of $86.57 billion, according to CoinMarketCap data.
In the midst of decreasing activity and sharp pullbacks, Solana DAT firm Forward Industries, Inc., which recently closed a $1.65 billion private placement to create the largest SOL corporate treasury, holds 6.82 million SOL purchased at an average price of $232. The position is now valued at $1.2 billion, reflecting a 24.13% unrealized loss totaling $382 million.
The company’s shares have also experienced a dramatic drop of 73.6% from their $39.6 peak to $10.44, resulting in a $900 million market cap, which is below its SOL holdings value (mNAV < 1).
SOL Price Analysis: Key Demand Zone Under Test
At the moment, SOL is facing crucial support between $155 and $160. The token has broken below its descending trendline and the middle Bollinger Band, with RSI dipping near oversold territory at 30.25. Momentum indicators such as MACD remain bearish, suggesting that the recovery could be gradual unless SOL closes above the $185–$190 zone.
If buyers manage to reclaim that level, the next upside target lies near $210–$225, aligning with the upper Bollinger Band. However, failure to defend the current support could drag prices toward $140–$130, an area that coincides with the lower Bollinger boundary support.
