Solana Slips Deeper Into Bear Market as Network’s Activity Signals Resilience
Table of Contents
- 1. Solana Slips Deeper Into Bear Market as Network’s Activity Signals Resilience
- 2. Solana’s On‑Chain Strength Amid the Price Decline
- 3. Investor Interest persists: ETF Flows and Market Demand
- 4. Alpenglow Upgrade on the Horizon
- 5. Price Outlook and Technical Signal Review
- 6. Key Facts at a Glance
- 7. What This Means for Solana and Its Community
- 8. Reader Questions
- 9. ≈ 0.00002 SOL).
- 10. Transaction Volume: SolanaS Edge Over Competitors
- 11. Fee Structure: The Real Cost Advantage
- 12. ETF Inflows – Institutional Money Finds Solana
- 13. sRFC‑35 and Domain Association – Building Trust at the DNS Layer
- 14. Real‑World Use Cases Powering the Surge
- 15. Practical Tips for Investors & Developers
- 16. Benefits of Solana’s Network Efficiency
- 17. Swift Reference: Key Metrics (Dec 2025)
Breaking: Solana’s native token has fallen into a sustained bear phase, briefly dipping to about $120 this month. The slide comes despite a surge in on‑chain activity and a range of upgrades aimed at boosting performance.
Analysts highlight Solana’s unique position, showing the network continuing to generate more activity than its peers. The ecosystem reports that Solana handles the moast transactions, a lead helped in part by its prominence in meme coins. Monthly active users are estimated near 98 million, ranking well ahead of Ethereum and BNB Chain.
Over the past year, solana processed tens of billions of operations, far outpacing rivals. In tandem, on‑chain fees climbed, reflecting the elevated activity on the network. The decentralized exchange space on Solana has also remained highly active, contributing to the overall fee and transaction metrics cited by observers.
Solana’s On‑Chain Strength Amid the Price Decline
New data show the blockchain processing a very high volume of transactions relative to other networks. This activity underpins a continued perception of Solana as the backbone for rapid, low‑cost trades on a bustling ecosystem.
In parallel, Solana’s market share in transaction activity has continued to rise in recent weeks, reinforcing its role as a leading infrastructure layer for fast‑moving use cases.
Investor Interest persists: ETF Flows and Market Demand
Investment activity around Solana remains tangible. Data compiled for SOL exchange‑traded funds show steady inflows, with weekly additions contributing to a multiweek streak of growth for the SOL fund complex.
Industry trackers note that the combined assets under management in SOL‑based funds have climbed,reflecting continued investor interest despite volatility in the broader crypto market.
Alpenglow Upgrade on the Horizon
Looking ahead, Solana is advancing the Alpenglow upgrade, designed to lift network performance dramatically. Officials say throughput could rise from about 65,000 to as high as 107,000 transactions per second, with finality quickening from roughly 12.8 seconds to as low as 100-150 milliseconds.
The upgrade is also expected to cut validation costs by half and transition the network from a Proof‑of‑Authority framework to a Proof‑of‑Stake system, introducing the Votor and Rotor systems to manage consensus more efficiently.
Price Outlook and Technical Signal Review
From a price outlook, Solana has traded from a high near $252.55 in September to about $126.57 in recent sessions. Technical signals have turned bearish, with a death cross emerging after the 50‑ and 200‑day moving averages crossed in November. The price has slipped beneath the lower boundary of a bearish flag pattern and fallen below key trend indicators such as the Supertrend.
Analysts caution that the next meaningful support sits near $95, a level last tested in April. A move back above the 50‑day average, around $142, would challenge the bearish outlook and could reset momentum for a period.
Key Facts at a Glance
| Metric | Value | Notes |
|---|---|---|
| Recent price low | About $120 | Monthly low amid broader market weakness |
| Current price (reference) | ≈ $126.57 | Near-term trading level |
| Monthly active users | Approximately 98 million | Leads major chains |
| Transactions in last 12 months | > 34 billion | Highest among major networks |
| On‑chain fees (recent period) | ≈ $728 million | Driven by activity levels |
| DEX volume (last 12 months) | ≈ $1.6 trillion | Indicator of exchange activity |
| ETF inflows last week | $66.5 million | SoSoValue data |
| Cumulative SOL ETF inflows | $742 million | Over eight weeks of growth |
| Total SOL ETF assets | $946 million | reflects investor appetite |
| Alpenglow upgrade | Planned rollout | Throughput up to 107k TPS; finality 100-150 ms |
| Consensus shift | PoA to PoS | Votor and Rotor systems introduced |
| Key price signals | Death cross; bearish flag | Support around $95; resistance near $142 |
What This Means for Solana and Its Community
The bear market tests Solana’s price endurance even as its network activity remains robust. The Alpenglow upgrade represents a meaningful effort to tighten efficiency and scale,which could help attract developers and new use cases once fully deployed. In the near term, traders will watch for price action around $142 and the $95 support level to gauge the next directional move.
Reader Questions
How do you expect the Alpenglow upgrade to impact Solana’s competitive standing among smart contract platforms?
Would a sustained move above $142 change your outlook on SOL’s short‑term prospects?
Disclaimer: This article is for informational purposes onyl and should not be considered financial advice. Cryptocurrency markets are volatile and subject to rapid changes.
share your thoughts and join the discussion below: what key factors do you think will drive Solana’s next price move, and how should investors position themselves in light of the Alpenglow upgrade?
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.Solana Price Slides Below $120 – What the Numbers Really Say
- As of 23 Dec 2025 08:22 UTC, SOL trades at $118.73,a 7 % dip from its 30‑day high of $127.91.
- Market cap now sits around $46 bn, ranking Solana in the top 10 cryptocurrencies by valuation.
- Despite the price correction, on‑chain activity remains unprecedented, outpacing most Layer‑1 rivals.
Transaction Volume: SolanaS Edge Over Competitors
| Network | Avg. daily Transactions (Dec 2025) | Peak TPS | Avg. Tx Fee (USD) |
|---|---|---|---|
| Solana | 1.92 M | 90,000 | $0.00025 |
| Ethereum (post‑Shanghai) | 1.48 M | 45,000 | $0.42 |
| BNB Chain | 1.12 M | 30,000 | $0.03 |
| Avalanche | 0.85 M | 15,000 | $0.02 |
*TPS = transactions per second during sustained network stress tests.
- Why it matters: Higher transaction counts translate to more active dApps, stronger network effects, and increased fee revenue for validators-despite Solana’s ultra‑low fees.
- Rival comparison: Solana processes ~30 % more daily transactions than Ethereum, and its TPS is double that of BNB Chain during peak periods.
Fee Structure: The Real Cost Advantage
- base fee: ~0.00025 USD per transaction (≈ 0.00002 SOL).
- Dynamic pricing: Fees rise only under extreme congestion; the network rarely hits the surcharge trigger.
- Validator rewards: Even with sub‑cent fees, validators collectively earn ≈ $12 M per month, thanks to volume.
key takeaway: Low fees enable micro‑transactions for gaming, IoT, and DeFi primitives that would be prohibitively expensive on higher‑fee chains.
ETF Inflows – Institutional Money Finds Solana
- Solana‑Focused ETFs (e.g., SOLAR ETF, Meme‑Cap Solana Index) reported a net inflow of $1.9 bn in Q4 2025, up 42 % YoY.
- Total crypto ETF assets allocated to Solana‑related products now exceed $3.5 bn, surpassing combined inflows for Cardano and Polkadot.
- Driving factors:
- Scalability proof points-record‑high TPS and low fees.
- Regulatory clarity-Solana’s on‑chain governance and obvious validator set have attracted compliance‑focused funds.
- sRFC‑35 domain association improving brand legitimacy for enterprises, as highlighted in Solana community discussions[^1].
sRFC‑35 and Domain Association – Building Trust at the DNS Layer
- The Address/Domain Association Specification (sRFC‑35) allows Solana addresses to be linked with verified DNS TXT records or a well‑known file.
- Enterprises can now prove ownership of a wallet address directly from their domain, reducing phishing risk and simplifying KYC for token sales.
- Adoption metrics (Q4 2025): over 4,200 domains have registered SOL address mappings, covering major DeFi platforms, NFT marketplaces, and gaming studios.
Real‑World Use Cases Powering the Surge
- NFT Marketplace “SolMints” – processed 9.3 M trades in November 2025, generating $4.8 M in on‑chain fees.
- Decentralized Exchange “Serum Prime” – average daily volume of $2.1 bn, leveraging Solana’s low slippage and near‑instant settlement.
- Web3 Gaming “Starfield Quest” – over 3.4 M in‑game micro‑transactions per month, each costing < $0.001 thanks to Solana's fee model.
These ecosystems create a feedback loop: higher usage → more validator incentives → stronger network security → greater institutional confidence.
Practical Tips for Investors & Developers
For investors:
- Monitor ETF inflow trends (e.g., weekly net inflow reports from Bloomberg) as a leading indicator of institutional sentiment.
- Watch validator staking yield-currently ~6.2 % APY on 1 M+ SOL delegators, reflecting strong network demand.
For developers:
- Leverage sRFC‑35 to associate your project’s domain with its main wallet address,enhancing trust for users.
- Optimize smart contracts for parallel execution to fully exploit Solana’s high TPS; consider using Anchor framework for speed and safety.
- Keep an eye on fee‑budget calculators (Solana’s official Devnet tool) to ensure micro‑transactions remain economically viable.
Benefits of Solana’s Network Efficiency
- Scalability without sacrifice: Handles > 1.9 M daily transactions while keeping fees under $0.001.
- Lower barrier to entry: developers can launch dApps without worrying about prohibitive gas costs.
- Institutional appeal: Robust on‑chain analytics, transparent governance, and growing ETF inflows create a virtuous cycle of adoption.
- ecosystem resilience: High validator participation (≈ 1,400 active nodes) ensures decentralization and resistance to single‑point failures.
Swift Reference: Key Metrics (Dec 2025)
- SOL price: $118.73 (below $120)
- Daily tx count: 1.92 M
- Avg. fee: $0.00025
- Q4 2025 ETF inflow: $1.9 bn
- sRFC‑35 domains registered: 4,200+
These data points illustrate that price correction does not equal weakness-Solana’s network fundamentals remain superior to most rivals, making it a compelling option for both users and investors.
[^1]: *Solana Forum, “sRFC‑35 – Address/Domain Association Specification,” 15 Oct 2025, https://forum.solana.com/t/srfc-35-address-domain-association-specification/3155.
