Solana's native token, SOL, experienced an 11% decline after hitting resistance at $93 last Wednesday. According to Odaily, the token's recent performance has been weaker compared to the broader crypto market, repeatedly testing the $80 support level. Concerns are mounting that its price might further test the $75 mark, as Solana's network fees have been decreasing for two consecutive months. On-chain data reveals Solana's total value locked (TVL) is approximately $6.3 billion, significantly trailing Ethereum's $54.1 billion. However, Solana's network fees over the past 30 days remain 80% higher, primarily due to Ethereum's fee reduction through Layer 2 Rollup and data Blob mechanisms.
In March, Solana's network fees dropped to $18.5 million, a 42% decrease from January's $30 million, largely influenced by shrinking decentralized exchange (DEX) trading volumes. Solana's DEX trading volume fell to $55.5 billion, marking the lowest level since September 2024. In contrast, Ethereum's March DEX trading volume was $41 billion, a 23% decline from two months prior. However, when considering Layer 2 networks like Base, Arbitrum, Polygon, and Optimism, Ethereum's DEX market share increased from 33% in January to 42%, challenging Solana's dominance and partly explaining SOL's current pressure.
Despite these challenges, Solana's ecosystem fundamentals remain supportive. Over the past 30 days, Solana boasts 13 DApps generating over $1 million in revenue, surpassing Ethereum's 11, and BNB Chain and Base, each with 4. Projects like Helium Network continue to attract developer and financial interest. Overall, while declining DEX activity has impacted short-term performance, Solana's ecosystem profitability and developer appeal persist, with no conclusive evidence suggesting SOL will inevitably fall below the $75 support level.
Catherine
