SOL Price Drops To $75 As DEX Volumes Plummet
Main Receptors:
Solana outperforms Ethereum in high-revenue DApps, providing a fundamental cushion against recent price declines.
A rising trend will challenge the SOL as traders control the critical support level of $80 for a retest.
Solana native token SOL (SOL) is facing an 11% correction after last Wednesday's rejection at $93. SOL has delayed the broader cryptocurrency market over the past week, testing the $80 support on multiple occasions. Solana Networks fees have also declined over the past two months, leading traders to fear that they could retest the $75 level.
The total value locked (TVL) on Solana stands at $6.3 billion, although the difference is wide compared to Ethereum's $54.1 billion. However, Solana has collected 80% more network fees than its main competitor in the last 30 days. This difference is largely due to Ethereum's incentives for layer-2 bundles, which use temporary blocks of data to reduce costs.
Network fees on Solana fell to $18.5 million in March, a 42 percent decrease from January's $30 million. Much of this decline comes from low activity in decentralized exchange (DEX) volumes. Solana DEX volumes fell to $55.5 billion, the lowest level since September 2024, according to Defillama data, although it maintained its absolute lead.
In comparison, Ethereum DEX volumes totaled $41 billion in March, down 23% from two months ago. More importantly, when including Base, Arbitrum, Polygon, and Optimism, Ethereum's Layer-2 blockchain, Ethereum DEX's market share rose to 42% in March from 33% in January. Solana's dominance is slowly being challenged, which partially explains SOL's current rate of depression.
Solana DAP's earnings could strengthen the SOL $80 support level.
While the amount of DEX on Solana is decreasing, no other network can match the number of DApps earning $1 million or more in 30 days. This data serves as a strong incentive for developers to join Solana, creating feedback opportunities for users through protocols such as Pump, Helium Network, and the ORE protocol. A healthy ecosystem remains critical to SOL's growth as protocol revenues drive investors' attention.
Related: Solana MasterCard, Western Union on New Dev platform
Solana leads the pack with 13 DApps earning $1 million or more in revenue over the past 30 days. By comparison, runner-up Ethereum has 11 DApps, while BNB Chain and Base have a total of 4 DApps each with $1 million or more in monthly revenue. Therefore, there is little evidence that the SOL price should retest $75 due to lower network fees driven by weak DEX volumes.
DEX activity is the main driver of network fees, but the durability of protocols in the Solana ecosystem shows that SOL has not been abandoned by investors.
This article is prepared in accordance with Cointelegraph's Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and transactions involve risk; Readers are encouraged to do independent research before making any decisions. Cointelegraph makes no warranty as to the accuracy or completeness of the information provided, including forward-looking statements, and shall not be liable for any loss or damage arising from reliance on such content.
