Solana rally capped by SOL token unlock and memecoin decline
Solana's native token, SOL, fell 10% to $167 after a rejection at $185, raising concerns about a potential drop to the $142 support level. Despite this decline, Solana remains the second-largest network by total value locked (TVL) at $11 billion, a 14% increase from the previous month. Ethereum continues to dominate with a broader layer-2 ecosystem. Solana's decentralized exchanges (DEXs) recorded $94.8 billion in trading volume over 30 days, surpassing Ethereum's $64.8 billion, while Solana generated $48.7 million in fees compared to Ethereum's $36.9 million. Anticipated unlocking of 3.55 million SOL, valued at $600 million, may limit price upside. Solana faces challenges from maximum extractable value (MEV) issues and declining interest in memecoins, with several experiencing significant losses. Despite these risks, Solana's trading volume and deposits indicate no immediate underperformance compared to the altcoin market, though upcoming token unlocks may hinder SOL's recovery to $200.
