Solana's native token, SOL, has seen a price drop of 32% from its all-time high of $295 on January 19, as traders' sentiment turns negative. Onchain transaction volumes for Solana decreased by 28% in the week ending February 10, totaling $31.8 billion, indicating a slowdown in decentralized exchange (DEX) activity post the recent memecoin frenzy. This decline has affected token prices, reducing staking incentives for SOL. Trading volumes on major Solana applications like Orca and Raydium dropped significantly. The negative funding rates on SOL futures reflect weak demand from leveraged buyers, although this does not necessarily indicate a bearish outlook. Notably, Solana's total value locked (TVL) remains stable compared to competitors like Ethereum, which saw a growth of 9% in TVL. Despite the current decline in trading activity, analysts suggest that SOL may attract institutional inflows if a spot ETF is approved in 2025, given its resilience in key metrics relative to rivals.

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