Solana’s strength hides a weak spot: Are 65 mln transactions enough for SOL?
On-chain data shows two sides for Solana: Bullish signals and warning signs.
Key Takeaways
Solana leads all blockchains with 65 million transactions and fees surpassing $1.2 million. User activity slides as monthly active users fall to a three-month low, with weakening retention.
Solana [SOL], the fifth-largest cryptocurrency by market capitalization at $134 billion, faces pressure from diverse on-chain activities that reveal both strengths and weaknesses.
Though a segment of the data highlights a strongly performing chain — supporting Solana’s 25% gain in the past month — the rise may not last and that a reversal could follow in upcoming trading sessions.
AMBCrypto analyzed the possibilities for Solana and its short- to near-term outlook.
Solana leads other market segments
According to a recent report from BeingInvested, Solana led other blockchains across several key on-chain performance segments.
Data reveals that over 65 million transactions were recorded on the chain in the space of a week, significantly outperforming Base, which ranked second with just 10–12 million transactions.
The chain also led in fees generated during this period. Solana recorded $1.2 million in fees, creating a $200,000 gap over Ethereum [ETH], which came a close second.
Arbitrum [ARB] and Hyperbridge completed the top list, though their transaction volumes and fees remained extremely minimal compared to Solana.
Ideally, this level of dominance should confirm growing demand for SOL and strengthen its price outlook. However, user activity data suggests otherwise. Here’s what AMBCrypto found.
It isn’t a green light for price
The path isn’t entirely bullish for Solana, with user activity data showing weaker momentum than the transaction numbers imply.
For example, in the past day, monthly active users on the chain dropped to a three-month low. At press time, only about 72.4 million users had interacted with the network this month.
Retention has followed the same downward path. Returning Users fell to 1.5 million in the past day, according to Artemis. This shows that retention has gradually declined as overall user interaction weakens.
Given the rise in transactions last week alongside shrinking user numbers, the surge may have been driven by sell-offs as users churned out of the network rather than sustained organic activity.
On-chain funding remains strong
Despite weakening user retention, on-chain funding activity points to a different insight.
Total Bridge Netflow data, which tracks the movement of capital across chains, suggests investors from other networks are still shifting funds to Solana.
In the past day alone, Solana recorded the second-largest Total Bridge Netflow, with $7.7 million added from cross-chain investors.
This flow could imply that investors see SOL as undervalued at its press-time price of $249 and expect more upside in the coming days.
SOL remains roughly 16% below its all-time high of $294, reached in January, according to CoinMarketCap.
Sustained inflows from bridging investors could help push the price higher, potentially crossing the key psychological threshold of $300 that it has yet to reclaim.
