Solana News Today: Solana Sees Record On-Chain Activity Amid Whale Sell-Offs and Competitive Pressures

Solana (SOL) has witnessed a surge in on-chain activity, reaching record highs in transactions and Total Value Locked (TVL), according to recent data from SolanaFloor and DeFiLlama. In July 2025, the network recorded an all-time high in monthly non-voted transactions, with true transactions per second (TPS) averaging 1,318, the highest figure ever observed [1]. At the same time, Solana’s TVL in native SOL has reached the highest level in over three years, signaling increased engagement from DeFi protocols and users [2].

Despite these impressive metrics, major holders are actively unstaking and selling SOL, contributing to heightened market pressure. Galaxy Digital unstaked 250,000 SOL ($40.7 million) and transferred it to Binance on August 6, as noted by Lookonchain [3]. Another whale, tracked by Onchain Lens, unstaked $4.9 million in SOL after a two-month inactivity period, while over the past four months, this same whale has unstaked $30.07 million in SOL. Although the whale still holds $179 million in staked SOL, the ongoing unstaking activity reflects growing sell pressure [4].

The price of SOL has underperformed against other major cryptocurrencies, with a year-to-date (YTD) decline of nearly 30%. In contrast, Bitcoin (BTC) has gained 26%, Ethereum (ETH) 15%, and XRP 48% [5]. Analysts attribute this performance gap to intensified competition and delays in Solana’s technology roadmap. The rise of Hyperliquid DEX has significantly impacted Solana’s market narrative, as it has captured momentum with its user-friendly perpetuals product [6].

Matthew Sigel, head of digital assets research at VanEck, noted that Hyperliquid's functional product offering has drawn power users away from Solana. At the same time, Solana’s development efforts have faced turbulence, including missed deadlines for the Firedancer high-performance client and internal challenges involving developer departures and public disputes [7]. Sigel suggested that such instability may be contributing to whale rotations, despite bullish on-chain data.

However, not all large wallets are exiting. Ted, an analyst, highlighted a $12 million SOL purchase on Binance that was subsequently restaked to Kamino Finance, indicating that some whales are viewing the current dip as an opportunity [8]. While Solana’s performance remains strong in terms of transaction speed and ecosystem growth, Sigel emphasized that institutions and serious capital require stability and trust—qualities that Solana’s engineering roadmap has yet to fully deliver.

As of August 6, 2025, Solana was trading at $164.31, down more than 2% in the past 24 hours [9]. The combination of high on-chain activity and whale sell-offs highlights the complex dynamics affecting Solana’s market position. With the crypto landscape evolving rapidly, Solana will need to address these challenges to rebuild investor confidence and maintain its competitive edge.

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[1] title1.............................(https://en.coinotag.com/solana-records-high-on-chain-activity-amid-whale-sell-offs-and-competitive-pressures/)