Solana is not collapsing, but showing a clear cooling in the crypto market. SOL lost 52% between September 18 and November 21, in a context where altcoins declined. The key point is not only the drop in price towards a possible $80 scenario, it is the simultaneous drop in on-chain indicators, which suggests a real decline in usage and engagement on the network.
In brief
- Solana declines significantly, with SOL down 52%, and on-chain signals confirm a cooling of the network
- TVL falls to $8.67 billion, while ETF flows are not enough to revive activity
- Fewer fees, fewer active addresses and fewer transactions add to the bearish pressure, with $80 as the risk zone.
The TVL of Solana goes backwards, and it's not just a table number
Solana continues to capture flows via its ETFs, despite its decline. But this movement is not necessarily reflected in on-chain activity. At the same time, the total value locked on Solana fell to $8.67 billion, a six-month low, from a peak of $13.22 billion reached on September 14. In other words, more than a third of the locked value has evaporated. It's not a detail. It is a contraction of confidence, or at least a tactical disengagement.
What is striking is the duration. TVL remained below $10 billion over the last 30 days, a signal that the crypto market cannot ignore. In a network that also lives on its “fast and cheap” storytelling, maintaining a limp TVL for too long ends up weighing on perception. And perception, in the market, is often the first domino.
Hindsight also has a face. Liquidity staking through Jito has reportedly fallen by around 53% since mid-September, and major applications like Jupiter, Raydium, and Sanctum are showing marked declines. We can call it a rotation. We can also see a decline in the appetite for risk in the Solana ecosystem.
Less activity, fewer fees, fewer reasons to buy SOL
Next comes a signal that is often underestimated in the crypto market: fees. Last week, channel fees reportedly hit $3.43 million, down about 11% week-over-week and 23% month-over-month. It's not just an indicator, it's the pulse of the network.
Same dynamic on the use of Solana. Active addresses are said to have fallen by around 7.8% over seven days, and the number of transactions by around 6.3%. Taken separately, each of these figures can be discussed. Together, they report a decline in on-chain demand. And when demand falls, the pressure on price becomes mechanical.
This is where the SOL gets stuck. The token is both a speculative asset and a fuel. If the ecosystem consumes less, fuel is of less interest. And in this context, each rebound feels more like breathing than a real change in diet.
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