Gate News, April 1, after Solana native token SOL was rejected around $93 last Wednesday, it pulled back by about 11%. In recent days, its performance has been clearly weaker than the overall crypto market, and it has tested the $80 support level multiple times. Meanwhile, Solana network fees have been falling for two consecutive months, and the market is concerned that its price may further retest the $75 level. On-chain data shows that Solana’s current total value locked (TVL) is about $6.3 billion, still significantly behind Ethereum’s $54.1 billion. However, in the past 30 days, Solana network fees have still been more than 80% higher, mainly because Ethereum reduces mainnet fees through its Layer2 Rollup and data Blob mechanisms.
Looking at the details, Solana’s network fees fell to $18.5 million in March, down 42% from $30 million in January, mainly driven by a contraction in trading volume on decentralized exchanges (DEXs). Data shows that Solana DEX trading volume dropped to $55.5 billion, the lowest level since September 2024. By comparison, Ethereum’s March DEX trading volume was $41 billion, down 23% from two months earlier. But when Layer2 networks such as Base, Arbitrum, Polygon, and Optimism are included, its DEX market share has risen from 33% in January to 42%, posing a challenge to Solana’s dominance—and to some extent also explaining SOL’s current pressured trend.
However, from an ecosystem fundamentals perspective, Solana still has support. Over the past 30 days, Solana has had 13 DApps with revenue exceeding $1 million, leading Ethereum’s 11, as well as the 4 each from BNB Chain and Base. Protocol revenues, including projects such as Helium Network, continue to attract developers and capital attention. Overall, although declining DEX activity has dragged down short-term performance, Solana’s ecosystem profitability and ability to attract developers are still there, and the market currently has insufficient evidence to suggest that SOL will necessarily fall below the $75 support level due to lower network fees. (Cointelegraph)
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