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Solana’s Recent Performance
Solana’s price has been on a rollercoaster ride lately. Unfortunately, the cryptocurrency is facing significant headwinds as it dropped 14% over seven days after rejection at $158, currently trading around $146. Despite this sharp decline, investors continue to show strong support for SOL, indicating confidence in its long-term prospects.
A closer look at network data reveals that total value locked on Solana has remained steady near the $10 billion mark across the network. However, a concerning trend is emerging regarding decentralized application revenue. The weekly revenue generated by these applications has plummeted from an astonishing $100 million to under $40 million in a short span. This downturn coincides with waning interest in memecoin activity, which had previously fueled growth.
On a more positive note, the NVT ratio (Network Value to Transactions) suggests that Solana’s network value is better aligned with its actual transactional activity. This metric typically indicates whether an asset is overvalued or undervalued compared to its usage. In this case, it appears Solana has not become overpriced relative to its use.
The cryptocurrency’s near-term outlook will be heavily dependent on the regulatory environment and upcoming ETF approvals. If approved, a spot exchange-traded fund could significantly boost investor interest in SOL. On a longer horizon, potential catalysts for growth include tokenized securities and real-world assets integrated onto the Solana blockchain.
Solana’s native token SOL is not without its challenges, however. The network has experienced stagnation in recent months, as evidenced by flat DApp revenue numbers. This development could be contributing to investors’ hesitation to invest in the cryptocurrency at present.
Analysts point out that Solana offers superior performance compared to Ethereum across multiple metrics. They suggest this technical advantage may drive institutional adoption and increased blockchain use cases beyond speculative trading.
Source: coincentral.com
