Solana News Today: Solana TVL Rises 2.67% as SOL Dips 10% Amid Ethereum's Gains

Solana’s on-chain fundamentals continue to display strength despite a notable decline in its native token’s price. As of August 6, 2025, Solana’s Total Value Locked (TVL) increased by 2.67% in the past 24 hours, indicating sustained activity within its ecosystem [1]. However, the price of SOL has fallen nearly 10% in the same week, signaling a growing divergence between on-chain performance and market sentiment [1].

The contrast is particularly stark when compared to Ethereum, which has attracted a greater share of institutional investment flows [1]. In July 2025, DeFi Dev Corp reported a 91% month-over-month increase in its exposure to SOL, yet Solana’s price appreciation of only 11.57% over the same period lags behind Ethereum’s 48.76% surge [1]. The SOL/ETH ratio has dropped by 25%, marking one of its worst monthly performances since 2022 [1]. This decline suggests that capital is increasingly favoring Ethereum over Solana, even as Solana’s TVL and user metrics remain stable [1].

Ethereum’s growing user engagement, reflected in rising daily transactions and active addresses, further supports its position as a dominant smart contract platform [2]. These developments are often precursors to price appreciation, as increased utility and network demand typically drive asset value higher. In contrast, Solana’s on-chain metrics—while strong—have not yet translated into sustained price momentum [1].

Some analysts argue that Solana’s technical advantages, such as fast transaction speeds and low costs, position it well for future growth [3]. However, the current price trend raises questions about whether these fundamentals can overcome broader market sentiment and institutional preference for Ethereum [1]. With the SOL/ETH ratio retesting key support levels, a further decline appears likely unless a clear risk-on trigger emerges [1].

Speculative projects on the Solana network, including popular meme coins like Bonk and LilPepe, have seen occasional surges in popularity [4]. Yet, these assets lack the institutional-grade use cases that could drive broader adoption of the Solana ecosystem [4]. As a result, Solana remains vulnerable to shifts in investor sentiment and the cyclical nature of the crypto market.

Looking ahead, price forecasts for SOL are mixed. Some projections suggest a potential rise to $500 by late 2025, while more conservative estimates predict prices to hover between $180.92 and $184.75 in the coming months [5]. However, these projections are speculative and have not yet materialized in current market conditions [5].

Ethereum’s deep liquidity and expanding use cases in DeFi and smart contracts continue to solidify its dominance in the space [2]. As Solana’s broader ecosystem struggles to evolve beyond speculative tokens and attract institutional-grade applications, its ability to compete with Ethereum in the near term remains uncertain [1].

Source:

[1] title: Solana’s On-Chain Strength Contrasts with Price Decline: Is Continued Downside Possible Against Ethereum? (https://en.coinotag.com/solanas-on-chain-strength-contrasts-with-price-decline-is-continued-downside-possible-against-ethereum/)

[2] title: Ethereum Daily Transactions Soar — Is ETH Entering a New Bull Run? (https://www.mitrade.com/insights/news/live-news/article-3-1010870-20250805)

[3] title: Solana Price Forecast: Why SOL's Rise in 2025 May Struggle to Keep Pace with Dogecoin and LilPepe (https://cryptoadventure.com/solana-price-forecast-why-sols-rise-in-2025-may-struggle-to-keep-pace-with-dogecoin-doge-and-little-pepe-lilpepe/)

[4] title: 11 Best Solana Meme Coins to Buy in August 2025 (https://cryptonews.com/11-best-solana-meme-coins-to-buy-in-august-2025/)

[5] title: Solana (SOL) Price Prediction (https://www.bitget.com/price/solana/price-prediction)