Solana’s native token SOL remains under pressure after dropping nearly 6 percent and failing to break above the $147 resistance level on Thursday. The rejection came as investors reacted cautiously to weak U.S. labor market data and deteriorating consumer sentiment, triggering renewed risk aversion across the crypto sector.
Traders now express concerns that Solana may take longer than expected to revisit the $200 price range, especially following two months of forced liquidations that wiped out leveraged positions. Alongside this, onchain activity across the Solana ecosystem continues to decline.
Network Activity Weakens as TVL Drops
Solana’s total value locked (TVL) has fallen sharply to $10.8 billion, down from $13.3 billion in September. Major Solana-based protocols, including Kamino, Jupiter, Jito and Drift, all recorded deposit decreases exceeding 20 percent. Trading activity on Solana’s decentralized exchanges has also weakened, reinforcing a downward shift in network participation.
Despite the decline, Solana remains the second-largest blockchain by TVL, trailing behind Ethereum’s $73.2 billion. Ethereum’s momentum has been further supported by its layer-2 networks such as Base, Arbitrum and Polygon. The recent Fusaka upgrade, which enhanced scalability and wallet operations, has reduced pressure for users to migrate liquidity to competing chains like Solana.
Solana DEX volumes fell to $19.2 billion in the seven days ending Nov. 30, representing a 40 percent drop from four weeks earlier. The slowdown has raised concerns that weaker activity may create a feedback loop, reducing demand for SOL and encouraging traders to explore emerging ecosystems. For example, the new layer-1 blockchain Monad recorded $1.2 billion in DEX volume during its launch week.
Macro Pressure Adds to Bearish Sentiment
Solana sentiment was further affected by a report from Challenger, Gray & Christmas, which recorded 71,321 corporate layoffs in November, a level seen only twice since 2008. Additional stress came from tightening consumer credit conditions, with multiple U.S. State Attorneys General demanding information from “Buy Now, Pay Later” firms over repayment risks.
A PayPal study added to concerns, highlighting that nearly half of U.S. shoppers may rely on personal loans during the holiday season.
ETF Competition Intensifies
Demand for leveraged SOL futures remains muted, with the annualized funding rate sitting at 4 percent, below the neutral 6 percent benchmark. CoinShares data shows strong capital inflows—over $1.06 billion—into Bitcoin, Ethereum, and XRP exchange-traded products. Meanwhile, institutional interest in Solana ETPs remains comparatively low.
Recent approvals of XRP, Litecoin, and Dogecoin spot ETFs have intensified competition for institutional flows, and several Solana rivals are expected to receive ETF approvals soon.
The broader market environment has also reduced the likelihood of listed companies increasing their SOL reserves. Forward Industries (FWDI US), which holds 6.91 million SOL, now values those holdings below the initial investment, discouraging any share issuance that could dilute existing stakeholders.
What Could Push SOL Back Toward $200?
Solana’s path to reclaiming higher price levels depends significantly on macroeconomic stabilization. Analysts note that governments may introduce stimulus measures if economic pressure escalates, potentially reigniting investor appetite and sparking a broader altcoin recovery.
Until then, SOL remains capped under $140, facing challenges from declining network activity, shifting ETP trends and a cautious macro backdrop.