$SOL Is #1 in DEX Trading, So Why Is It Down?

Solana has the most DEX trading of any chain, and its network revenue is growing. Yet SOL sits near $101, down about 48% in a year, and just hit a 30-day low. Here's what's going on 👇

WHAT IT IS

Solana is a fast, cheap blockchain for trading, payments and apps. Fees are tiny and transactions confirm in a blink.

WHERE IT CAME FROM

Ex-Qualcomm engineer Anatoly Yakovenko shared the idea in 2017, and the main network went live in 2020. Its trick is a built-in clock that lets it process many transactions at once. SOL peaked at $295 in Jan 2025, and the June 2026 low was $62.

THE NETWORK IS STRONG

• 38% of all spot DEX trading, the most of any chain (week to Oct 25)

• Q3 network revenue up 48%, the first rise since late 2024

• Stablecoins on Solana hit a record, about $17.5B in September

• A record $7.1B of tokenized stocks traded in Q3

WHY THE PRICE IS STILL DOWN

• The whole DEX market shrank about 36% since late August, so Solana's share rose partly because everyone traded less

• ETF money is leaving: three weekly outflows in a row, and total inflows fell from $1.618B to $1.513B in a month

• SkyAI sold its whole SOL treasury, about 2M SOL

• Solflare's validator stopped paying staking rewards after a security incident (user funds reportedly safe)

• One app, Pump, made about 41% of Q3 app revenue, so growth leans on one hit

TOKENOMICS

• About 590-637M SOL, depending on the source

• Market cap: about $58-60B

• No hard cap. New SOL is created as staking rewards, and the rate falls over time.

THE CHART (price about $101)

• Support: $98-$99, where the 200-day line sits

• Below that: $90, then $86.67

• Resistance: $103, then $106 and $109 (the 50-day line)

• Last big high: $122.94 on Sept 25

• RSI is around 36: weak, but not extreme yet

3 SCENARIOS

Bull: $98-$99 holds, price reclaims $103 and then closes above $109. Next stop is $122.94.

Base: it ranges between $98 and $106 while ETF flows stay weak.

Bear: a daily close below $98 opens $90, then $86.67.

TRADE IDEA (analysis, not advice)

This is a bounce-from-support idea, against the downtrend, so keep size small.

Entry: about $100

Stop: daily close below $97

Targets: $106, then $109

Risk/reward: about 2:1 to the first target, 3:1 to the second

Safer way: wait for a daily close above $109 before buying.

RISKS

• ETF outflows could continue

• The downtrend is still intact (below the 20 and 50-day averages)

• Revenue leans heavily on one app

• Market-wide selling can drag SOL down even with strong fundamentals

MY TAKE

Solana is winning a shrinking game. The network is healthy, but price needs ETF money and the market to turn. $98 is the line that decides it.

Do you buy the dip or wait? 👇

Not financial advice. DYOR.

#SOL #Solana #Crypto