Solana’s price has been trending downward since January, even as the network racks up record usage and revenue. We saw SOL lag behind as the chain generated over $271 million in fees and payments in Q2 2025, more than any other network for three consecutive quarters.
The gap between price and activity is part of a larger crypto story: money churning between layer 1s, meme coins, and ETFs while regulators and institutions focus on Solana.
Why did Solana fall when the network seems strong?
If you are new to Solana, it is a high-speed blockchain computer competing with Ethereum. It handles many transactions at a lower cost, which attracts traders and app creators. According to CoinDesk, Solana generated over $271 million in network revenue in Q2 2025 and led all chains in users for three consecutive quarters.
So why is the price falling? One reason is that the strong sales surge from earlier in the year has waned. January 2025 saw the peak of decentralized exchange (DEX) activity on Solana with approximately $408 billion traded, including over $37 billion on January 18. A DEX itself is a crypto stock market without an intermediary. As this frenzy slowed in March, short-term traders left and the momentum faded.
We’ve already seen how this pattern manifests itself in other coverage, like our article on Solana DEX volume beating Binance. The chain processed more transactions than the largest centralized exchange, but SOL’s chart looks heavy. This disconnect confuses us who expect “more usage = higher price” in a straight line.
(source – Défilama)
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What does this gap between usage and prices mean for Solana holders?
Solana’s price reacts to short-term flows and narratives, while usage and revenue drive the long-term story. When traders move to meme coins or other layer 1s like Aptos, Sui, or Near, SOL can fall even when Solana’s applications are humming.
It hurts if you buy near the highs and watch the red candles every day. Yes, imagine being the one who bought Solana at its high of $293, which is 59% less than today’s price.
JUST IN: 27% OF @SOLANATHE OUTPUTS HAVE SHIFT TOWARDS @SUINETWORK DURING THE PAST MONTH pic.twitter.com/C6D0nJnoun
– ToreroRomero (@ToreroRomero) October 8, 2024
At the same time, big money continues to line products around Solana. The Franklin Templeton spot SOL ETF is live, now allowing people to purchase exposure to SOL in a regular brokerage account. Most recently, CME Group is preparing to launch Solana futures, according to another Reuters report, marking a significant milestone for Wall Street traders.
NEW: FRANKLIN TEMPLETON ANNOUNCES ITS SOLANA ETF IS NOW LIVE pic.twitter.com/D6BzKnUX6Q
– DEGEN NEWS (@DegenerateNews) December 3, 2025
These moves are important because they make it easier for institutions to trade and hedge SOLs. This doesn’t guarantee a higher price, but it does mean that SOL moves from pure retail hype to the same toolbox as Bitcoin and Ethereum. If you want more information before risking money, our leading Solana market positioning guide helps you see how this fits into the 2025 narrative.
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How should we treat SOL in this type of downtrend?
When prices fall even though fundamentals appear strong, the greatest danger lies in emotional trading. Many beginners panic sell near the bottom or revenge buy without a plan. Instead, treat Solana like a high-growth tech stock: exciting, but risky, very risky.
Ask yourself, “Do I buy a five-year story or do I chase last month’s chart?”
If you already own SOL, check what percentage of your net worth is there. For us, keeping a single altcoin as a small part of your portfolio helps you sleep at night. Never store rent, emergency money, or debt payments in SOL. The same network that posts $271 million in quarterly revenue can still fall by 50% in the event of bad market developments.
Also remember that strong indicators do not erase risks. Solana has already faced outages and stress events, which we talked about in our article on Solana under DDoS pressure. High throughput is great, but you still depend on chain stability, developer shipping, and regulators remaining comfortable with ETFs and SOL futures.
(source – Google)
If you believe in Solana’s long-term role alongside Ethereum and other tier 1s, this type of downtrend is more about position size and patience than prediction.
Watch how usage, revenue and ETFs are growing, evolving, zoom out and stop focusing only on the daily candle. As institutions step in and speculation continues, the real story will emerge where builders, users and fees are going, not just where the line moves this week.
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