Solana (SOL) is once again under intense market scrutiny as a combination of fading memecoin activity, declining user engagement, and continuous token unlocks by Alameda Research puts pressure on one of crypto’s strongest 2025 performers.
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While institutional inflows via ETFs remain robust, Solana’s ability to defend key technical levels, particularly the $140–$150 demand zone, will determine whether the asset stabilizes or slides into a deeper correction.
Memecoin Cooldown Sends User Activity to One-Year Low
Solana’s explosive rise in late 2024 and early 2025 was largely fueled by rapid memecoin launches and hyperactive retail speculation. But that frenzy has sharply cooled.
According to Glassnode and The Block, the number of daily active addresses has dropped to 3.3 million, down from over 9 million at the start of the year, marking a 12-month low. Most of the decline comes from the disappearance of bots and short-term users who flooded the chain during its speculative peak.
This slowdown has immediate consequences. Lower address activity has translated into softer fee revenue and thinner liquidity, making SOL more sensitive to market shocks.
Analysts warn that until new high-utility use cases, such as payments, gaming, or real-world asset apps, attract stickier users, Solana’s engagement metrics may continue to oscillate with speculative cycles.
Despite this decline, Solana’s ecosystem remains fundamentally strong. Its DeFi TVL stands at nearly $10 billion, supported by Jupiter, Jito, and Kamino, while developers continue to build stablecoin primitives, high-throughput consumer applications, and institutional-grade infrastructure, such as Firedancer.
SOL's price trends to the downside on the daily chart. Source: SOLUSD chart from Tradingview
Alameda Unlocks Clash With Record Solana ETF Inflows
Another major pressure point is the ongoing monthly SOL unlocks from the FTX/Alameda bankruptcy estate. On November 11, Alameda unstaked 193,000 SOL ($30 million), part of a vesting schedule that runs through 2028. These tokens often find their way to exchanges, creating short-term selling pressure.
However, institutional demand is delivering the opposite effect. Solana has now recorded 10–11 consecutive days of ETF inflows, totaling $336 million for the week.
Bitwise and Grayscale Solana ETFs collectively hold $351 million, and even traditional institutions like Rothschild Investment and PNC Financial Services have disclosed new positions.
SoFi Bank’s move to enable direct SOL purchases from U.S. checking accounts has further legitimized Solana within the regulated finance sector. This tug-of-war, systematic selling vs. accelerating inflows, defines Solana’s current volatility.
Technical Setup: $140 Is the Line in the Sand
SOL is trading around $152–$156, having broken below key support at $156 amid rising volume. Indicators remain bearish:
- OBV continues trending downward, signaling persistent seller dominance.
- Market structure shows lower highs and lower lows since early November.
- Liquidity heatmaps reveal strong magnetic zones at $144 and $140, making a retest highly likely.
Analysts view $140 as the crucial support area. If it fails, liquidity extends toward $120, opening the door for a deeper correction.
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But a successful defense could trigger a sharp rebound toward $165–$180, especially if ETF flows remain steady and Bitcoin holds above the $98k–$100k range.
Cover image from ChatGPT, SOLUSD chart from Tradingview
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