Solana's Price Drops 3.7% as HumidiFi Becomes Largest DEX on Network

Solana's latest price was $176.25, down 3.698% in the last 24 hours. HumidiFi has become the largest decentralized exchange (DEX) on the Solana network by trading volume, indicating increased activity and liquidity within Solana-native liquidity pools. Solana's Proof-of-History (PoH) combined with Proof-of-Stake consensus ensures ultra-low latency and high throughput, processing over 65,000 transactions per second (TPS) with sub-second finality. Recent upgrades, including stake-weighted Quality-of-Service and QUIC protocol improvements, have further stabilized the network's performance and reliability.

The Solana Policy Institute has joined the American Innovation Project, a newly launched crypto advocacy group aimed at shaping U.S. blockchain policy. This move positions Solana as an active participant in regulatory dialogue, strengthening its institutional footprint. Bullish IPO utilized Solana-based stablecoins, raising a record $1.15 billion, showcasing institutional-grade usage of Solana’s DeFi infrastructure. However, the SEC has issued a freeze on ETF products linked to Solana, XRP, and Bitcoin, delaying decisions until at least October, which introduces regulatory uncertainty into Solana’s financial outlook.

In the broader crypto market, Solana remains a strong competitor in DeFi, NFT marketplaces, and DePIN projects like Helium, strengthening its position as a leading smart contract platform. The total value locked (TVL) on Solana reached $12.1 billion this week, further securing its vice-leadership position over BNB Chain at $7.8 billion. Several decentralized applications (DApps) such as Kamino, Jito, Jupiter, Sanctum, Raydium, and Marinade each surpassed $2 billion in TVL. Sustained activity reinforces SOL demand, as transaction fees are essential to maintaining native staking yields.

Solana's DeFi dominance and growing fees sustain network demand, boosting investors’ long-term confidence. Institutional investors’ interest in SOL futures, ETP exposure and staking yield add to SOL’s resilience. Solana has consolidated its role as the second-largest decentralized exchange (DEX) ecosystem, recording $111.5 billion in 30-day volumes. While Ethereum remains dominant, Solana outpaced the combined Ethereum layer-2 networks, which generated $93.1 billion. BNB Chain trailed with $60 billion. The rivalry intensified in July, when Pump.fun began outperforming its more established competitor across several metrics. By early August, Letsbonk.fun still held 88.8% of “graduate tokens”, those reaching active trading — but Pump.fun’s monthly revenue hit a record low. Now, the tables have turned and fast.

Solana's native token SOL dropped 15.5% since reaching $209.80 on Thursday, its highest price in more than six months. The pullback raised concerns that a double top formation might signal a bearish reversal. Yet, four key indicators suggest the opposite, and Solana may soon retest the $200 level, contradicting short-term trader pessimism. Solana has consolidated its role as the second-largest decentralized exchange (DEX) ecosystem, recording $111.5 billion in 30-day volumes. While Ethereum remains dominant, Solana outpaced the combined Ethereum layer-2 networks, which generated $93.1 billion. BNB Chain trailed with $60 billion. The total value locked (TVL) on Solana reached $12.1 billion this week, further securing its vice-leadership position over BNB Chain at $7.8 billion. Several decentralized applications (DApps) such as Kamino, Jito, Jupiter, Sanctum, Raydium, and Marinade each surpassed $2 billion in TVL. Sustained activity reinforces SOL demand, as transaction fees are essential to maintaining native staking yields.

Solana's institutional participation expands in futures and exchange-traded products. Open interest on SOL futures climbed to $10.7 billion, up from $6.9 billion two months ago. This now exceeds XRP futures, despite XRP having an 81% larger market capitalization. The growth signals rising institutional participation, a positive factor for long-term adoption. Further evidence of institutional demand comes from $2.8 billion in Solana exchange-traded futures and products (ETF / ETP). The 7.3% native staking yield could drive strong demand once Solana spot ETFs launch in the United States. The retracement from $209.80 sparked fears of a bearish double top. However, Solana’s leadership in DEX volumes, TVL expansion, accelerating fee growth, and mounting institutional exposure collectively argue otherwise. Rather than confirming a bearish shift, these drivers support a renewed push toward $200, validating the hypothesis that traders may have turned bearish too soon.

Solana (SOL) traded at $182 at press time, recording a minor daily rise while holding a 4% gain over the past week. Daily trading volume reached $5.22 billion. Meanwhile, the daily chart shows Solana building an ascending triangle pattern. The asset has respected an upward trendline while testing resistance at $185–$190 several times. Analyst Jonathan Carter noted that Solana is retesting this barrier after an earlier false breakout. A confirmed push above this zone would validate the structure and could set the stage for further gains. The resistance holds steady at $185–$190. An upside breakout above this level can pave the way to $205, $225, and $268. Conversely, on the negative end, the ascending trendline at around $165 is also acting as a support zone, in addition to the 100-day moving average (MA100). A break below this level will weaken the existing structure. Additionally, the Relative Strength Index (RSI) runs in the median range, demonstrating that there is still some upside potential before it can be overbought. The volume data also exhibits better activity during upward moves, which supports the bullish outlook. On August 18, Solana was trading at a Spent Output Profit Ratio (SOPR) of 0.9988. Below-1 readings indicate that coins have already started moving at a loss, as profit-taking occurred earlier this month when SOPR was above 1 during the rally above $200. Moderate currents indicate consolidation around breakeven, with buyers weaker following recent highs. Analyst Ali Martinez has cautioned that if resistance holds, Solana could retreat toward $180 or $160, areas that have acted as support before. Over the weekend, Solana briefly processed more than 100,000 transactions per second (TPS) on its mainnet, reaching a peak of 107,540 TPS. Most of the activity came from “noop” program calls, which are lightweight instructions used to stress-test capacity. At the same time, wallets holding more than 10,000 SOL recently climbed to a new all-time high, showing accumulation by larger holders even as price movement remains mixed.

Solana (SOL) got a significant boost to its liquidity and interoperability. On Tuesday, August 19, DEX aggregator 1inch (1INCH) integrated Solana cross-chain swaps with its platform. Users can now swap assets on Solana with those on 12 EVM networks, without relying on cross-chain bridges. According to 1inch, users will be able to move their assets while retaining custody. At the same time, the platform will leverage Fusion+ intents to offer fast and secure cross-chain swaps. This integration positions 1inch to compete with Solana-based Jupiter DEX aggregator, enhancing Solana's ecosystem by providing users with more options for seamless asset transfers across different blockchain networks.

Significant developments have emerged in the Solana ecosystem, highlighting its expansion and integration within the cryptocurrency sector. Bullish successfully raised substantial funds through an initial public offering using Solana-based stablecoins, marking one of the largest capital injections via such tokens and underscoring growing institutional adoption of Solana's stablecoin infrastructure.

Technologically, Solana demonstrated substantial scalability by surpassing 100,000 transactions per second, a key milestone that validates its capacity for high-throughput blockchain applications. This advancement positions Solana as a leader in decentralized networks, with potential for broader real-world usage in areas like payments and data processing.

Regulatory and financial aspects saw mixed outcomes, as the U.S. Securities and Exchange Commission delayed decisions on spot exchange-traded fund approvals for Solana, introducing uncertainty into its investment landscape. Despite this, inflows into Solana-focused financial products gained momentum, including substantial investments in a dedicated Solana ETF. Concurrently, decentralized exchange liquidations on Solana surged significantly compared to centralized exchanges, reflecting heightened activity and adoption within its decentralized finance ecosystem.

Interoperability efforts accelerated with 1inch launching cross-chain swaps between Solana and multiple Ethereum Virtual Machine-compatible chains, enabling seamless asset transfers and expanding Solana's utility in multi-chain environments. Other projects, such as GateToken, are preparing to integrate Solana into their cross-chain expansions, signaling wider interest in leveraging Solana for enhanced DeFi interoperability.

Beyond technical growth, Solana's ecosystem strengthened through community-driven initiatives, with events like Coinfest Asia reinforcing its role as a hub for innovation and collaboration among developers. This grassroots momentum complements ongoing institutional interest, with narratives around Solana-focused ETFs continuing to fuel market discussions about its long-term viability.