Solana still cannot hold above $89. Every attempt to return to this level ends with a loss of momentum and rapid closing of bullish positions in the derivatives market. This increases the risk of breaking support around $80 — this level is now in the spotlight.
Funding rate data from CoinGlass shows an unfavorable picture for buyers. The rate has remained negative for more than a week. This means that sellers are paying a premium to hold short positions. In other words, the market is noticeably skewed toward bearish expectations, and participants are willing to pay for such bets. When this dynamic persists for a long time, it is rarely a coincidence.
Solana liquidation volume from June to February. Source: CoinGlass
Drop in Open Interest Indicates Long Positions Are Exiting
An even more alarming signal is the open interest dynamic. According to CoinGlass, it dropped from about $13.5 billion to $3.4 billion. That is a 75% decline. This is not a local correction, but a massive exit of leveraged players from long positions.
When open interest falls so sharply, it usually means either forced liquidations or voluntary risk closure. In both cases, the market loses fuel for growth. Without new inflows of long positions, rebound attempts often fade at the start.
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It is also important that a reversal in the derivatives market does not happen on its own. It coincides with worsening on-chain metrics, which increases overall price pressure.
DApp Revenues Fall to Multi-Month Lows
According to DefiLlama, DApp on the Solana network earned about $22.8 million in the past week. That is 25% less than the previous week, when the figure was $30.4 million. Thus, network revenues have dropped to their lowest level since October 2024. This is not a collapse, but the slowdown is noticeable.
The drop in revenues directly affects validator incentives and staking yields. If network activity falls, the flow of fees also decreases. This reduces the attractiveness of staking. And if holding the token becomes less profitable, the long-term motivation to hold weakens. This is not always immediately reflected in the price, but the pressure gradually builds up.
There is another factor. A significant part of the recent growth in Solana revenues was linked to meme coin launchpad activity.
Dependence on Meme Coins Continues to Weigh on the Network
A significant portion of DApp revenues on the Solana network was tied to meme coin trading cycles. Such fee flows can grow quickly, but can also disappear just as fast. This is different from more stable revenue sources such as lending protocols, block building, or steady DeFi demand.
Compared to Ethereum, Solana still receives a smaller share of revenue from deep infrastructure. This means weaker institutional positioning and a lower overall total value locked. It is not that the network lacks practical value. But its revenue model remains more retail and cyclical.
When interest in meme coins wanes, network revenues usually follow. And this slowdown is already noticeable.
Fund flows into crypto funds by asset for the week, month, and year to date. Source: CoinShares, Bloomberg
ETF Gap Reflects Institutional Caution
Institutional demand also gives an important signal. According to CoinShares, products based on Solana currently have about $2.1 billion under management. By comparison, Ethereum-based products exceed $16 billion. Such a gap is hard to ignore.
This suggests that large investors still trust the sustainability of Ethereum revenues and its breadth of use more. Limited inflows into ETF mean that SOL does not have the same structural demand capable of smoothing out selling pressure during declines. In a bear phase, stable inflows into exchange-traded products often cushion drawdowns. In Solana’s case, this buffer looks noticeably weaker.
Derivatives Structure Still Points Down
A negative funding rate combined with falling open interest forms a clear signal. Sellers have high confidence, and there are few new long positions. Over the past month, Solana has also lagged behind the broader crypto market, confirming that bears remain in control.
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The key zone is now in the range of $78 to $80. If SOL can confidently hold this corridor, stabilization and a recovery attempt are possible. But a break of support could trigger a new wave of liquidations and extend the current bearish structure.
Why This Matters
When network revenues decline and the derivatives market simultaneously shifts into a pronounced bearish skew, demand weakens and price pressure grows. This combination increases the likelihood of a sustained move below $80, especially if the overall market backdrop remains unstable.
Solana cannot be called broken. However, current data shows the asset is under pressure. Until the funding rate turns positive or network revenues stabilize, growth attempts may quickly lose momentum.
