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The price action of SOL is lagging behind the overall altcoin market: Has the golden age of Solana come to an end?.$SOL
SOL is lagging behind multiple competing altcoins as its on-chain activity, fees, and DApp revenues decline.
👉Key points:
🔸SOL has fallen behind the altcoin market, as the drop in fees and DApp revenues indicated lower demand for the Solana network.
🔸Growth has shifted to Base, Arbitrum, Polygon, and BNB Chain, reducing the chances of a short-term rebound for SOL.
The native token of Solana, SOL 100.70 €, has dropped 32% since November, underperforming the overall altcoin market, which decreased by 21%. This gap has become a concern for bulls, especially given the inflows into SOL exchange-traded funds (ETFs) and a growing number of companies adding the asset to their balance sheets as a reserve strategy.
Traders are now wondering what would need to change for the price of SOL to establish a sustained upward trend.
The Solana ETF industry in the U.S. has accumulated 636 million dollars in assets since the launch of the REX-Osprey SOL+Staking ETF in July. At the same time, companies like Forward Industries (FORD US), Solana Company (HSDT US), and Sharps Technology (STSS US) have collectively added 20.35 million SOL to their balance sheets, valued at over 2.5 billion dollars.
Native staking on Solana has also helped limit the amount of SOL immediately available for sale. Almost 68% of the circulating supply is currently delegated to the network's proof-of-stake system, a proportion that has steadily increased in recent months. Staking yields on Solana can exceed 6%, as SOL remains inflationary to offset the costs of operating validators.
