Sol Falls Behind Most Major Altcoins: Here’s Why
SOL has dropped 32% since November, falling more than the broader altcoin market’s 21% decline. This underperformance is notable despite $636 million in US Solana ETFs and over $2.5 billion worth of SOL being added to corporate balance sheets. Around 68% of SOL’s supply is staked, reducing immediate selling pressure and offering yields over 6%. However, declining onchain activity is a concern: network fees and DApp revenues on Solana have each dropped about 30% recently, and weekly transactions grew just 4%, far behind Ethereum’s layer-2s like Base (up 34%), Arbitrum (up 21%), and Polygon (up 89%). Competitive pressures are rising as BNB Chain DApps and Binance’s prediction market initiatives gain ground. The outlook for a SOL price rebound is weak without a revival in network activity, with further headwinds from both blockchain competitors and traditional finance innovations.
