Solana News Today: Solana Price Dives 10% Despite 500% Surge in Stablecoin Volume and 2.67% TVL Gain

Solana (SOL) has experienced a 10% decline in price over the past week, despite showing robust on-chain activity, including a 2.67% increase in Total Value Locked (TVL) over the past 24 hours and a 500% month-on-month rise in stablecoin volume. This divergence highlights a growing disconnect between network performance and market sentiment, with risk-off behavior continuing to pressure Solana’s price [1].

The broader market environment has contributed to this decline. Aggressive deleveraging across the crypto space has led to a drop of more than $4 billion in Solana’s Open Interest over the past two weeks. In comparison, Ethereum has lost over $10 billion in Open Interest, yet it has outperformed Solana in both absolute and relative returns [1]. Institutional investors have also shown mixed signals, with DeFi Dev Corp. (NASDAQ: DFDV) reporting a 91% increase in its Solana holdings, yet the asset remains underperforming against Ethereum [1].

Ethereum’s continued dominance is evident in the rising number of wallets holding over 10,000 ETH, signaling a shift in capital toward the Ethereum ecosystem. Meanwhile, Solana has seen a reduction in high-net-worth wallet activity, further weakening its relative position [1]. The SOL/ETH ratio has declined by 25% in the past month, marking its worst monthly performance since 2022, despite Ethereum rising 48.76% versus Solana’s 11.57% gain [1].

The broader crypto market has been in a bearish phase, with major players like Coinbase also experiencing significant losses. Coinbase’s stock fell over 19% in the same period, partly due to a $2 billion fundraise and a second Base network outage, compounding investor concerns [2]. A weak U.S. jobs report and an unclear regulatory roadmap have further fueled risk-off sentiment, affecting even high-performance blockchains [3].

While Solana’s fundamentals remain strong—evidenced by consistent user retention and growing developer activity—the recent price correction underscores the volatility inherent in the crypto space. Market sentiment, rather than on-chain metrics, has taken precedence, leading to a continued underperformance against major competitors [1].

Analysts suggest that a strong risk-on catalyst will be necessary for Solana to break through the $200 psychological barrier and regain momentum. Without such an event, the bearish divergence between price and usage is expected to persist, prolonging the current period of relative weakness [1].

Source:

[1] Trakx Weekly Update: Crypto Dips As Fed Holds (https://trakx.io/resources/weekly-update/crypto-dips-as-fed-holds-august-4-2025/)

[2] Coinbase Slumps Amid Announcement of $2 Billion Fundraise, Second-Ever Base Outage (https://sherwood.news/crypto/coinbase-slumps-amid-announcement-of-usd2-billion-fundraise-second-ever-base/)