SOL struggles as Solana TVL slides and memecoin demand fades

The Solana native token, SOL, is struggling to maintain prices above $145 due to declining network activity and reduced demand for decentralized applications (DApps). Solana's Total Value Locked (TVL) has dropped by over $10 billion from its September peak of $15 billion, increasing the available SOL supply for sale. Furthermore, DApp revenues have significantly weakened, falling from $37 million to $26 million weekly, partly due to a 67% drop in DEX volumes following the collapse of memecoin-driven activity that peaked in January. While SOL's funding rates indicate low bullish conviction after a 46% price drop, the network's fee decline (21%) is less severe than competitors like BNB Chain (67%) and Ethereum (41%). Despite positive developments like the launch of the Firedancer validator client and new products from Kamino, analysts suggest these improvements alone may not be enough to restore sustainable bullish confidence without renewed user participation.

(Source：Cointelegraph)