Market Analysis
In a shocking development that has sent ripples through the crypto market, Solana’s network activity has plummeted to crisis levels, with transfer volume crashing by over 99% from its November 2024 peak. Recent analysis of Solana’s network metrics shows an unprecedented decline in activity, raising serious concerns about the network’s current trajectory.
Transfer Volume Collapse
According to data shared by crypto analyst Ali Martinez, Solana’s transfer volume has experienced a dramatic fall from $1.99 billion in November 2024 to just $14.57 million – a staggering 99.3% decrease. This collapse in network activity coincides with SOL’s price struggling below the critical $150 mark, currently trading at $141.
Technical Analysis
The price action presents a concerning picture for SOL holders:
- Current price: $141
- Critical support: $140
- Next major support: $130
- Price retracement from ATH: 55%
Market Implications
The severe decline in transfer volume suggests a significant cooling of interest in the Solana ecosystem, particularly in the meme coin sector that previously drove much of the network’s activity. Market experts warn that this dramatic drop in network usage could trigger further selling pressure if the trend continues.
Expert Perspectives
“The collapse in transfer volume is particularly concerning as it indicates a fundamental shift in network usage patterns,” notes Martinez. “This level of activity decline often precedes further price corrections.”
Looking Ahead
For SOL to reverse this bearish trend, several key factors need to align:
- Defense of the $140 support level
- Recovery in network transfer volume
- Return of institutional interest
- Stabilization of the broader crypto market
Investors should closely monitor these metrics in the coming days, as they will likely determine SOL’s short to medium-term price trajectory.