Explainer: What Causes Solana’s Downfall Despite Key Achievements?

The Solana (SOL) price is navigating a bearish zone despite the blockchain securing a record total value locked (TVL). Though the Solana ecosystem has outpaced several competitors in key metrics, the SOL token failed to recover from the recent crypto market crash.

Is Solana Price Falling Below $190?

Solcasino, a crypto casino on Solana, shared an X post, directing the community’s attention to the Solana price’s next target. As per Solcasino, Solana may either surge to $250 or drop to $150.

Despite SOL trading below the $200 level, the Solana price is poised for a significant breakout. According to an X post shared by Bitcoin enthusiast Lark Davis, Solana is nearing an “inflection point.” This means that the Solana price is approaching a critical level where it could either surge or drop.

A breakout above the descending resistance line, marked around $200, could spark a price surge. At the same time, a drop below the $189 support level, marked by the 200 EMA, may trigger further downward momentum for Solana.

As of press time, the SOL price is trading at around $191, marking a daily decline of 5.11%. Over the last week and month, SOL experienced a decline of 21.33% and 8.58%, respectively. With a market cap of $92.91 billion, Solana is ranked 5^th on CoinMarketCap. Notably, the token’s daily trading volume has fallen by a significant 25.75%, currently at $3.76 billion, highlighting changing investor sentiment.

Will Solana Surge Past $280? Analyst Weighs In

Bitcoin investor Castillo Trading deems Solana a strong cryptocurrency that has shown remarkable performance throughout this cycle. As per his analysis, the Solana price has successfully retested the lower limit of $180.

$SOL looks strong. Great re-test of Lower Limit on flush. Holding well, first target is Median ML then Upper Limit$SOL has been a clear winner throughout thee cycle. Some say its because the meme ecosystem, regardless I'm sure $SOL stays volatile here. Need to keep eyes on it pic.twitter.com/kZbQQF7VQQ

— Castillo Trading (@CastilloTrading) February 5, 2025

Solana’s next target is to break above the median line at approximately $230, followed by a possible rally to the upper limit of $280. However, the analyst warns of potential volatility in Solana’s price in the near term, advising investors to closely monitor its movement.

Messari Unveils Solana’s 2024 Q4 Growth

Messari, a prominent blockchain analytics platform, unveiled the Solana ecosystem’s remarkable growth during the fourth quarter of 2025. By the end of the quarter, Solana had secured the second spot in DeFi TVL rankings, boasting an impressive $8.6 billion, up 64% QoQ.

In addition, Solana saw a staggering 213% QoQ growth in Chain GDP, increasing from $268 million to $840 million. The protocol’s applications raked in a whopping $367 million in November alone, marking the highest monthly revenue.

Solana’s stablecoins also saw a massive growth of 36% QoQ. With a $5.1 billion market cap, the stablecoins on Solana ranked 5^th among the networks. Meanwhile, Solana’s liquid staking rate surged by 33% QoQ to 11.2%.

During Q4, the Solana price saw significant upticks, with the token reaching an all-time high of $257 in November.

January Marks New ATHs for Key Metrics

According to Blockworks Research, “Solana saw unprecedented on-chain activity in January, leading to all-time highs on several fronts.” These include Real Economic Value (REV), app revenue, DEX Volume, and Stablecoin Supply.

Notably, Solana’s REV hit a new ATH of $552 million in January, capturing a dominant 62% share of global on-chain transaction demand. Real Economic Value (REV) is a metric that gauges user demand for blockchain transactions, capturing the total value paid for executing transactions.

Similarly, applications on Solana had a record-breaking revenue of $517 million in the last month. The decentralized exchange (DEX) volume also hit a new ATH and a staggering 80% MoM growth, amounting to $339 billion. The stablecoin supply on Solana also increased by 128%, reaching $11.4 billion.

Interestingly, the Solana price reached a new all-time high of $261.87 in January, coinciding with the blockchain’s appreciable journey. Despite the current downtrend, analysts and traders remain optimistic that the Solana price will see an imminent rebound, surging past $200. As analysts remarked, if SOL surges past the resistance level, it could reach a new ATH.