Despite a 72% plunge from its all-time high of $295, Solana’s native token SOL continues to show resilience in the face of challenging market conditions. As the crypto market grapples with broader economic uncertainties, Solana’s network metrics tell a different story, one that suggests a potential undervaluation of the SOL token.
Spot ETFs: A Mixed Bag of Resilience and Decline
Spot SOL ETFs launched in late October 2025, attracting significant attention with over $100 million in average net inflows during their first five weeks. However, since December 2025, the weekly inflows have slowed to an average of $20 million to $25 million, coinciding with a sharp price retracement to $86 by February 2026.
Despite this decline, the cumulative outflows over the four-month drawdown totaled just $11.3 million over two weeks. This is in stark contrast to Bitcoin (BTC) and Ether (ETH) ETFs, which have experienced four consecutive months of negative flows during the same period.
Network Activity: A Bright Spot Amidst the Downturn
Solana’s on-chain volumes and revenue metrics paint a picture of robust network activity. Over the past 30 days, Solana processed $108 billion in decentralized exchange (DEX) volume, surpassing Ethereum’s $63.7 billion and Base’s $31.48 billion. This trend continued into January, with volumes reaching $117 billion, a significant increase from the previous months.
In the last 24 hours, Solana generated $3.1 million in app revenue, slightly edging out Ethereum’s $2.95 million. The number of active addresses on Solana stands at 2.17 million, more than three times that of Ethereum’s 682,236. Additionally, Solana’s chain fees reached $722,706, nearly double Ethereum’s $356,438.
Real-World Assets and Tokenomics
Solana’s Real-World Assets (RWA) sector has also seen substantial growth, climbing to a new all-time high of $1.71 billion, a 45% increase over the past 30 days. While Ethereum still holds the majority of the $25.37 billion distributed asset value in the RWA industry, Solana’s rapid growth in this sector is noteworthy.
Technical Analysis: Support and Resistance Zones
Crypto trader Scient has identified two key areas that could shape the bottoming process for SOL. The first is the 0.75 Fibonacci retracement zone between $60 and $70, a level associated with deeper pullbacks within larger uptrends. The second is a weekly demand fair value gap (FVG) between $22 and $29, an area of prior liquidity imbalance that preceded the explosive rally to $200 from $25.
Currently, the price is capped below the weekly resistance of $120, but it has tested the demand zone between $51 and $80, aligning with the retracement pocket. UTXO Realized Price Distribution (URPD) data shows that over 6% of the supply last moved within the current price cluster, creating a dense cost basis zone. The next significant concentration, above 3% of supply, sits between $20 and $30.
Valuation and Market Sentiment
From a valuation standpoint, SOL is near a realized supply cluster, while the ETF positioning has not unwound. Despite its lower total locked value (TVL), Solana’s DEX turnover leads other chains, highlighting a measurable gap between network activity and token valuation.
The price compression, coupled with consistent capital inflows and rising network use, suggests a potential undervaluation of SOL. Whether this gap resolves through a price recovery will depend on how the $51 to $80 support level and the $120 resistance level interact with these factors over the coming months.
Conclusion: A Bullish Case for SOL
Solana’s SOL token faces a complex market environment, but the underlying network metrics and technical analysis point to a potential undervaluation. As the crypto market continues to evolve, the resilience of Solana’s network and the growing interest in its real-world applications could drive a bullish outlook for SOL in the long term.
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