Solana (SOL) is facing significant volatility, with its Total Value Locked (TVL) falling below $9 billion for the first time since November 2024. This decline has raised concerns about user confidence within the ecosystem.
Despite this, Solana remains one of the most dominant chains in terms of volume, ranking second behind Ethereum in the last seven days. If user confidence returns and an uptrend emerges, SOL could reclaim values above $200 in March, but continued selling pressure could also push it below $100.
SOL TVL Fell Below $9 Billion For The First Time Since November 2024
SOL’s Total Value Locked (TVL) is currently at $8.5 billion, dropping from its all-time high of $14.2 billion on January 18. TVL measures the total amount of assets locked in a blockchain’s decentralized finance (DeFi) protocols, reflecting user confidence and liquidity within the ecosystem.
It is a key indicator of network health, as a rising TVL suggests increasing adoption and capital inflows, while a declining TVL indicates reduced user engagement or capital outflows.
This is the first time SOL’s TVL has fallen below $9 billion since November 9, raising concerns about the chain’s future. The decline coincides with growing community skepticism about the sustainability of major players like Pumpfun and Meterora, which are perceived as highly extractive.
Additionally, controversies surrounding the launch of meme coin LIBRA have contributed to uncertainty within the ecosystem. If TVL continues to decrease, it could signal declining user confidence, potentially leading to further price corrections for SOL.
Solana Is Still A Dominant Network, Despite the Recent Corrections
Despite the strong price correction SOL has faced in recent weeks, it remains one of the most dominant players in the crypto space.
Although its volumes are not as high as they were a few months ago, Solana continues to demonstrate significant user activity and adoption.
Among the largest chains, Solana currently holds the second spot in terms of volume over the last seven days, only surpassed by Ethereum but closely followed by BNB, which has been gaining momentum recently.
In the last 30 days, Solana has led in terms of volume, reaching $120 billion compared to $94 billion for BNB and $85 billion for Ethereum.
This shows that despite the price correction, Solana remains one of the most used blockchains, with massive volume.
Solana Can Reclaim $200 In March, But a Strong Uptrend Would Be Needed
If the current correction continues, Solana price could test the support at $120 soon.
If this level is broken, the price could decline further to $110 and potentially drop below $100 for the first time since December 2023.
On-chain metrics indicate that Solana remains one of the most used chains in the market, suggesting strong underlying demand. If an uptrend emerges, SOL could test a resistance at $152.
“For Solana, I am watching the slightly increasing level of shorts that are accumulating across exchanges. This, combined with the fact that FUD discussion rates have been rising, signals that a turnaround actually makes sense for a sentiment-driven asset like SOL… Once markets are able to bounce a bit, don’t be surprised if Solana has a bigger bounce than most due to all of the retail dropping out,” said Brian, Lead Analyst at Santiment
Breaking this level could lead to a rally towards $183. If user confidence returns, SOL could even reach $205, reclaiming values above $200 in March.
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