Solana: Why SOL’s price levels might not reflect its true value

Key Takeaways

Why is Solana looking poised despite recent price underperformance?

Solana’s on-chain activity remains robust, signaling strong network demand and investor interest.

Could BNB’s rally impact SOL?

BNB’s 30-day run and overheated RSI may trigger a rotation back into SOL, reinforced by on-chain activity and Bitwise’s staking ETF update.

This week’s data shows a clear rotation out of Solana [SOL]. 

Notably, SOL’s market share has dropped to 2.96%, while Binance Coin [BNB] has climbed to a two-year high of 4.43%, suggesting FOMO is chasing BNB for upside potential. 

But is this a sign of Solana’s weakening fundamentals driving capital elsewhere, or is it simply Binance Coin’s growth story attracting attention, making this shift more pro-BNB than anti-SOL?

Weekly on-chain trends highlight a multi-polar market

BNB’s been ripping, clocking a 50% jump over the last 30 days. 

By contrast, SOL has only managed a 1.5% uptick, making BNB’s rally nearly 33× larger. The result? The SOL/BNB ratio is down to 0.20, as of writing, marking its lowest level since Q4 2023 after four consecutive weekly losses.

However, on-chain data tells a slightly different story. Solana recorded 503.6 million economic (non-vote) transactions this week, more than 4.4x BSC’s throughput, fueling chatter that SOL might be relatively undervalued.

Backing this thesis, Solana’s weekly data looked bullish.

For starters, Solana Exchange Traded Products (ETPs) hauled in $706 million this week, marking a 127% above the prior all-time high, showing serious capital chasing SOL even if the price hasn’t caught up yet.

In short, Solana’s price underperformance reflects a pro-BNB momentum on the macro side, while on-chain and network fundamentals stay rock solid, reinforcing a healthy multi-polar market structure.

What happens to Solana if the market tilts?

As the market went risk-off, SOL slipped below $230 support. 

That said, SOL is now in consolidation, moving sideways between $220–$230. And the resilience isn’t random. At press time, Daily Network Volume was at $7 billion+, roughly 24% higher than BNB, showing Solana’s bid support.

Meanwhile, BNB is heating up across timeframes. The 2.2% intraday pullback, paired with an overextended RSI, could signal a local top, setting up a rotation back into Solana, backed by the volume flow.

In short, SOL appears undervalued, potentially setting the stage for its next leg higher.

Bitwise’s decision to rebrand its Solana staking ETF with a competitive 0.20% fee, just a week before the SEC hearing, adds fuel to the setup, signaling fresh inflows and possible buying pressure. It’s a textbook FOMO catalyst.

Supporting this outlook, on-chain metrics show continued network strength, suggesting the market isn’t ready to turn bearish on SOL. Combined with BNB’s overextension and Bitwise’s strategic timing, the conditions point to a compelling “buy the dip” opportunity.