Solana’s price has trended downward since January, even as the network racks up record usage and revenue. We saw SOL lag as the network generated more than $271 million in Q2 2025 fees and payments, more than any other network for three consecutive quarters.
The gap between price and activity lies within a broader crypto story: money rotates between Layer 1, meme coins and ETFs, while regulators and institutions focus on Solana.
Why has Solana fallen while the network looks strong?
If you are new to Solana, it is a high-speed blockchain computer that competes with Ethereum. It handles many transactions at low cost, which attracts merchants and app creators. According CoinDeskSolana generated more than $271 million in network revenue in the second quarter of 2025 and led all networks in users for three consecutive quarters.
So why is the price falling? One reason is that the sharp rise in trade at the beginning of the year cooled. January 2025 saw peak decentralized exchange (DEX) activity on Solana with around $408 billion traded, with over $37 billion on January 18. A DEX itself is a crypto exchange without intermediaries. As that frenzy slowed in March, short-term traders left and momentum faded.
We’ve already seen this pattern play out in other coverage, such as our article on Solana DEX volume surpassing Binance. The chain handled more transactions than the largest centralized exchange, but SOL’s chart looks heavy. That disconnect confuses us, who expect “more use = higher price” in a straight line.
(fountain – Defillama)
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What does this gap between price and usage mean for Solana holders?
Solana price reacts to flows and narratives in the short term, while usage and revenue drive the long-term story. When traders pivot towards meme coins or other layer 1s like Aptos, Sui or Near, SOL can drop even when Solana apps work.
It hurts if you bought near the highs and look at the red candles every day. Yes, imagine being the one who bought Solana at its peak price of $293, or 59% less than the current price.
ONLY IN: 27% OFF @SOLARIUMOUTPUTS WERE DEPLOYED TO @SUINETWORK IN THE LAST MONTH pic.twitter.com/C6D0nJnoun
— ToreroRomero (@ToreroRomero) October 8, 2024
At the same time, big money continues to line up products around Solana. Franklin Templeton spot SOL ETF is live, now allowing people to buy exposure to SOL in a regular brokerage account. More recently, CME Group is preparing to launch Solana futures, according to another reuters reportwhich is a big step for Wall Street traders.
NEW: FRANKLIN TEMPLETON ANNOUNCES HIS SOLANA ETF IS NOW AVAILABLE 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 SOL. That doesn’t guarantee a higher price, but it does mean that SOL is moving from pure retail hype to the same toolbox as Bitcoin and Ethereum. If you want to learn more before risking money, our main Solana market positioning guide will help you see how this fits into the 2025 narrative.
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How should we treat SOL in this type of downtrend?
When the price falls while the fundamentals appear strong, the biggest danger is emotional trading. Many beginners panic and sell near the bottom or revenge buy on dips without a plan. Instead, treat Solana like a high-growth tech stock: exciting, but risky, very risky.
Ask yourself: “Am I buying a five-year story or chasing last month’s chart?”
If you already own SOL, check what percentage of your net worth is in it. For us, holding any altcoin as a small portion of your portfolio helps you sleep at night. Never keep rent, emergency money, or debt payments in SOL. The same network that posts $271 million in quarterly revenue can still drop 50% in a bad market swing.
Also, remember that strong metrics do not eliminate risk. Solana has dealt with outages and stress events before, which we covered in our article on Solana under DDoS pressure. High performance is great, but it still depends on the chain remaining stable, developers shipping, and regulators feeling comfortable with SOL ETFs and futures.
(fountain – Google)
If you believe in Solana’s long-term role alongside Ethereum and other Layer-1s, this type of downtrend has more to do with position sizing and patience than prediction.
Watch usage, revenue, and ETFs progress, evolve, recede, and stop looking at just the daily candle. As institutions step in and speculation advances, the real story will show where builders, users and rates are going, not just where the line is moving this week.
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The post Solana Price Falls as Usage Rises: What’s Really Happening? first appeared on 99Bitcoins.
