SOL (SOL) faced a sharp 8% rejection after briefly touching $147 on March 25

For the past three weeks, SOL has struggled to reclaim the $150 level, which is leading traders to question whether the bullish momentum

Solana's native token, SOL (SOL), faced a sharp 8% rejection after briefly touching $147 on March 25. For the past three weeks, SOL has struggled to reclaim the $150 level, leading traders to question whether the bullish momentum originally driven by memecoin speculation and the rise of artificial intelligence sectors is coming to an end.

Some analysts believe SOL price could benefit significantly from the eventual approval of a Solana spot exchange-traded fund (ETF) in the United States, as well as the expansion of tokenized real-world assets (RWA), such as stablecoins and money market funds, on the Solana network.

Others, like Nikita Bier, co-founder of TBH and Gas startups, highlight that Solana has "the fundamental building blocks for something to break out on mobile."

Source: nikitabier

Bier mentioned the constructive regulatory environment from US President Donald Trump and the long-term impact of the memecoin frenzy, which brought "millions" of new users to Web3 wallets and decentralized applications (DApps). Essentially, Nikita Bier believes Solana is well-positioned due to its streamlined onboarding experience for mobile users.

Lackluster Bitcoin reserve announcement hurt all cryptocurrencies

Despite the potential for establishing a “consumer-grade” marketplace for DApps, most traders experienced losses as the memecoin mania faded and onchain volumes plunged. This decline has led investors to wonder if SOL has the strength to reclaim levels above $150.

Beyond the waning interest in DApps, Solana is also facing growing competition from other blockchains. Additionally, the realization that the US government would not purchase altcoins for its strategic reserve and digital asset stockpile was a major disappointment for some investors.

On March 6, President Trump signed a bill allowing budget-neutral strategies for the US Treasury to acquire Bitcoin (BTC), while altcoins in government possession could be strategically sold. In fact, there was no explicit mention of Solana or any other altcoin in the Digital Asset Stockpile executive order.

Some may argue that the Solana ecosystem extends far beyond memecoin trading and token launchpads, with total value locked (TVL) increasing in liquid staking, collateralized lending, synthetic assets, and yield platforms. However, Solana’s fees and DApp revenues have continued to decline. Reduced onchain activity deters investors from holding SOL, thus limiting its upside potential.

Solana 7-day DApp revenues (left) and chain fees (right), USD. Source: DefiLlama

Solana DApp revenues totaled $12 million in the seven days leading up to March 24, down from $23.7 million just two weeks earlier. Similarly, base layer fees reached $3.6 million in the same period, a sharp drop from $6.6 million in the seven days ending March 10. Interestingly, this decline occurred while the total value locked (TVL) remained stable at 53.2 million SOL.

Related: Specialized purpose DEXs poised for growth in 25 — Curve founder

Solana is no longer the dominant network in DEX volumes

The drop in Solana’s onchain activity is particularly concerning given that BNB Chain surged to the top spot in DEX volumes, despite having 34% less TVL than Solana, according to DefiLlama data.

Decentralized exchanges volume market share. Source: DefiLlama

In terms of volume, Solana dominated the DEX industry from October 2024 to February 2025 but has recently lost ground to Ethereum and BNB Chain. As a result, part of SOL’s price weakness stems from a decline in Solana’s onchain activity compared to its competitors. For instance, trading volume on Hyperliquid increased by 35% over the past seven days, while activity on Pendle surged by an impressive 186%.

Although fundamentals do not indicate an imminent rally above $150, the Solana network uniquely combines an integrated user experience with a degree of decentralization that has proven successful. For example, while BNB Chain and Tron offer similar scalability, neither has had a wallet or DApp rank among the top 10 on the Apple App Store—unlike Solana’s Phantom Wallet in November 2024. This fact highlights the potential for Solana to attract a broader user base than its competitors.