By Chris Hollingworth 
Solana’s native token, SOL (SOL), experienced an 8% decline after briefly hitting $147 on March 25. Over the past three weeks, SOL has been struggling to surpass the $150 level, prompting traders to question the sustainability of the bullish momentum initially fueled by memecoin speculation and the growth of artificial intelligence sectors.
Some analysts suggest that the approval of a Solana spot exchange-traded fund (ETF) in the US and the expansion of tokenized real-world assets (RWA) on the Solana network, including stablecoins and money market funds, could significantly benefit SOL’s price. Nikita Bier, co-founder of TBH and Gas startups, believes that Solana has the potential for breakthroughs in mobile technology.
Despite the potential for a consumer-grade marketplace for decentralized applications (DApps), most traders suffered losses as the memecoin craze subsided and on-chain volumes decreased. This has raised doubts among investors about SOL’s ability to reclaim levels above $150. In addition to fading DApp interest, Solana faces increasing competition from other blockchain networks.
The disappointment of the US government’s decision not to include altcoins, including Solana, in its strategic reserve and digital asset stockpile has also impacted investor sentiment. While the Solana ecosystem offers various opportunities beyond memecoin trading and token launchpads, declining fees and DApp revenues have limited its attractiveness.
Solana’s on-chain activity has declined, with a noticeable drop in DApp revenues and base layer fees. Despite stable total value locked (TVL), Solana has lost its dominance in decentralized exchange (DEX) volumes to networks like Ethereum and BNB Chain. This decline in on-chain activity compared to competitors has contributed to SOL’s price weakness.
While the fundamentals do not currently support a rally above $150, Solana’s network stands out for its integrated user experience and decentralized structure. The coming months will be crucial in determining whether Solana can regain its momentum and attract renewed interest from investors and traders alike.
