After a powerful start to the year, Solana (SOL) is showing signs of vulnerability, with price pressures mounting from multiple angles — fading hype around meme coins and a looming wave of token unlocks chief among them. While on-chain data still paints a picture of robust network activity, traders are starting to question just how much room there is left for SOL to rally in the near term.
The most recent dip saw SOL tumble 10% following a sharp rejection at the $185 level on May 23. Currently hovering around $167, the price has slipped to its lowest point in over a week. Market watchers are now eyeing $142 as the next possible support level, especially with selling pressure on the horizon.
But despite the price correction, Solana remains a heavyweight in the DeFi space. The network is firmly positioned as the second-largest blockchain in terms of total value locked (TVL), now sitting at around $11 billion — a 14% increase month-over-month. That growth, however, is somewhat tempered by Ethereum’s continued dominance, particularly with its expanding layer-2 ecosystem offering both scalability and low fees.
Some of Solana’s top decentralized applications (DApps) have posted strong TVL growth. Raydium saw deposits jump by 48%, while Marinade gained 28%. Yet the momentum was more modest across Jupiter, Kamino, and Drift — showing a mixed picture of growth across the platform.
Interestingly, Solana has been outpacing Ethereum in one important area: trading activity on decentralized exchanges. Over the past 30 days, Solana’s DEXs have handled roughly $94.8 billion in volume, eclipsing Ethereum’s $64.8 billion. This edge is supported by Solana’s focus on mobile-friendly Web3 integrations, which have helped it attract retail and newer crypto users.
And while Ethereum’s layer-2s collectively added $59.2 billion in volume, the value capture dynamic tells a different story. Solana generated $48.7 million in fees over the same period, far ahead of Ethereum’s $36.9 million — a notable feat considering Ethereum’s larger capital base. Meanwhile, the BNB Chain continues to lag behind, with only $15.1 million in fees, leaving questions about the authenticity of some of its activity metrics.
Still, one of the biggest shadows hanging over SOL is the anticipated unlocking of 3.55 million tokens between June and August — worth about $600 million at current prices. These tokens are linked to the now-defunct FTX/Alameda estate and were originally acquired at just $64. That deep discount could tempt holders to cash out, especially if prices show any signs of strength.
Another factor that complicates Solana’s value proposition is MEV — maximum extractable value. The high-throughput nature of the network allows validators to reorder transactions for profit, opening the door to predatory practices like front-running and sandwich attacks. Paradigm researcher Dan Robinson recently described MEV as Solana’s “biggest problem,” underlining the need for more transparent validator incentives.
Adding to the complexity is the declining appeal of Solana-based meme coins. Once a significant driver of activity, many have now seen sharp retracements. Official Trump (TRUMP) slid by 24% over the past week, while FARTCOIN, POPCAT, and Pudgy Penguins (PENGU) all saw losses between 17% and 20%. If retail interest continues to fade, DEX volume could take a further hit — and with it, SOL’s price momentum.
Despite all this, Solana still shows signs of resilience. Its dominance in on-chain volume and consistent user engagement suggest it isn’t in danger of falling off the radar anytime soon. But with several headwinds brewing — from unlock-related sell pressure to questions around validator fairness and memecoin fatigue — the path back to $200 is looking more uncertain by the day.
