By Chris Hollingworth 
Solana’s native token, SOL (SOL), experienced a notable 8.5% surge on March 24, surpassing the $142 mark for the first time in two weeks. This upward movement aligned with the broader cryptocurrency market trend, reflecting a growing optimism among traders regarding reduced risks of an economic downturn. Notably, meme coins also demonstrated strong performance, with several rallying by 12% or more since March 23.
Apart from benefiting from the overall market rally, SOL has showcased its own strengths, such as an increase in network activity and the direct involvement of US President Donald Trump in the meme coin market. Additionally, the rising interest from prominent traders on exchanges and the potential approval of a spot Solana exchange-traded fund (ETF) hint at further possibilities for SOL’s price appreciation.
Despite the recent rally, SOL has underperformed the broader crypto market by 23.7% over the past two months. This underperformance can be attributed to a significant 93% decline in Solana network fees during the same period. The initial disappointment in the meme coin sector among traders gradually impacted the entire decentralized application (DApps) market.
Currently trading 52% below its all-time high of $295, SOL’s price level raises questions regarding whether the selling pressure was an overreaction. Despite this, Solana remains the second-largest blockchain in terms of total value locked (TVL) and ranks third in on-chain volumes. For comparison, BNB is trading 20% below its peak, while XRP is down by 28%.
While facing competition from Tron and BNB Chain in terms of on-chain volumes, Solana network’s smart contracts hold deposits worth $6.8 billion, surpassing BNB Chain’s $5.4 billion TVL. Key features of Solana include the Jito liquid staking solution, Kamino lending and liquidity platform, and the Jupiter decentralized exchange.
The fees on the Solana network have recently exceeded those on the Ethereum base layer, surpassing $1 million per day. Moreover, Solana’s revenue has reached its highest levels in two weeks, indicating a positive trend in network activity. In contrast, Ethereum accrued less than $350,000 in fees on March 23.
Top traders on Binance have significantly increased their leveraged long positions on SOL, as indicated by a surge in the long-to-short ratio to 2.40 on March 23, the highest level in over two months. This surge in activity is partly attributed to the anticipation of a potential spot Solana ETF approval in the US.
The decision on the spot Solana ETF approval is awaited from the US Securities and Exchange Commission, with expectations for a verdict before year-end. If approved, this ETF could differentiate SOL from its competitors, enhancing its credibility, particularly among institutional investors.
Additional momentum for SOL came from a social media post by President Trump over the weekend, mentioning the TRUMP meme coin and sparking enthusiasm in the sector. Within the Solana ecosystem, coins like Fartcoin, Dogwifhat (WIF), and Pudgy Penguins (PENGU) experienced notable price rallies, reflecting the broader positive sentiment in the market.
