AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Solana’s native token, SOL, has struggled to surpass the $150 resistance level since August 12. Despite some positive network metrics, such as a notable increase in total deposits within its decentralized applications (DApps), questions remain about whether these improvements can drive SOL’s price back to $190.
A significant factor impacting SOL’s performance is the recent decision by Cboe Global Markets to remove the 19b-4 forms for spot Solana exchange-traded funds (ETFs) from its website on August 16. This move has led to speculation that the United States Securities and Exchange Commission (SEC) may have informally rejected the Solana ETF proposals, aligning with SEC Chair Gary Gensler’s previous statements. Senior ETF analyst Eric Balchunas from Bloomberg concurs, suggesting that while S-1 filings for the ETFs are still active, approval prospects remain slim. The possibility of a favorable change in SEC administration could be a distant hope for proponents of a spot Solana ETF. Consequently, enthusiasm among market participants regarding a potential Solana ETF has waned, diminishing the impact of Solana’s network fundamentals on its price.
Additionally, Solana faces competitive pressures from Ethereum, which has seen its average transaction fees drop significantly, and from other blockchains benefiting from high-profile memecoin launches. Crypto trader CoinMamba points out that Solana may need to develop a new narrative and explore innovative DApps to regain traction.
Despite these challenges, there are noteworthy developments within the Solana ecosystem. [PayPal USD] (PYUSD), a stablecoin issued on Solana, achieved a substantial issuance figure since its launch in May 2024. Furthermore, ongoing projects, such as Colosseum and Decentralized Autonomous Wireless Network (DAWN), have secured considerable funding to advance ecosystem growth.
While the total value locked (TVL) on Solana has seen an increase, reaching its highest level since October 2022, this growth has not been accompanied by a proportional rise in DApp activity. The decline in user numbers for some of Solana’s top DApps and the concentration of growth in a few areas suggest that TVL growth alone may not be sufficient to drive a short-term price rally for SOL.
