Solana (SOL) Battles Volatility at $126 Support Level Amid Stablecoin Trading Surges and CME Futures Launch

Solana (SOL) is currently maintaining its position above $126, with a modest gain of nearly 2% over the past 24 hours, despite facing multiple headwinds that threaten to increase price volatility.

Solana (SOL) is currently struggling to maintain its position above the $126 mark, showing a modest gain of nearly 2% over the past 24 hours amid multiple headwinds that threaten to increase price volatility.

Recent market data suggests that the SOL/USD stability is being tested by unusual stablecoin trading patterns, underwhelming performance of CME futures, and declining transaction volumes across the network.

Solana Price Analysis: 'Extreme' Stablecoin Activity Signals Potential Volatility

The transport layer of Solana has seen what industry analysts call "extreme" volatility in USDT stablecoin trading. Following a 61% decline in the previous week, USDT trading on Solana's transport layer jumped by over 137% during the last week of February, according a Mercuryo analysis on global payments infrastructure.

Mercuryo co-founder and CEO Petr Kozyakov observed that this "frenetic activity" would "indicate that the chain is prone to be more volatile." This odd trend in stablecoin posture could indicate that traders are rearranging themselves in search of fresh investment prospects, thus generating more price activity for SOL in the next weeks.

Chart of USDT stablecoin trading on Solana's transport layer.

The Stability of SOL Is Tested as Stablecoin Trading Shows 'Extreme' Activity on Solana Chain During Last Week

At the same time, on-chain data from Glassnode reveals that the 30-day average transaction volume on the Solana network has decreased to 990,558, a 17% decline from the start of the year.

This signals a decrease in user activity on the network, which could have implications for the stability of SOL price in the long term.

Solana's Transaction Volume Declines

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Value of SOL Is Tested as Stablecoin Trading Shows 'Extreme' Activity on Solana Chain During Last Week

At the same time, on-chain data from Glassnode reveals that the 30-day average transaction volume on the Solana network has decreased to 990,558, a 17% decline from the start of the year.

This signals a decrease in user activity on the network, which could have implications for the stability of SOL price in the long term.

Solana's Transaction Volume Declines

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Network

This Signals Decrease in User Activity on the Value of SOL Is Tested as Stablecoin Trading Shows ‘Extreme’ Activity on Solana Chain During Last Week

At the same time, on-chain data from Glassnode reveals that the 30-day average transaction volume on the Solana network has decreased to 990,558, a 17% decline from the start of the year.

This