Network Faces Bearish Pressure as Market Confidence Wanes
Solana (SOL) is struggling to maintain its momentum as key metrics continue to slide. Once heralded as a formidable contender to Ethereum, the blockchain network is now witnessing a sharp downturn in revenue, trading volume, and price action. In a dramatic reversal, Solana’s revenue has taken a severe hit, tumbling from its January highs.
A 60-Day Freefall: Solana’s Revenue Collapse
Fresh data from DeFiLlama reveals that as of March 10, 2025, Solana’s chain revenue has plunged by a staggering 93% compared to its January peak. The blockchain network generated just 11,310 SOL in revenue, which, at an average market price of $128 per token, translates to approximately $1.45 million.
This marks a jaw-dropping contrast to January 20, when Solana’s revenue stood at a robust $41.77 million. Back then, SOL was riding high in the market, trading at $242 per token and basking in strong investor confidence. In just two months, Solana’s revenue has nosedived by a shocking $40.32 million—a 96.5% decline that underscores the severity of its ongoing struggles.
Market Struggles and Investor Sentiment
What is the primary culprit behind this dramatic slump? The declining price of SOL itself. Since mid-February, Solana has been trapped in a downward spiral, unable to reclaim its psychological $200 support level. Despite brief surges, the coin has failed to stage a meaningful recovery, leaving investors wary.
As of today, SOL is changing hands at $124.39, reflecting a modest 1.06% gain in the past 24 hours, according to CoinMarketCap. However, its trading volume has taken a significant hit, dropping by 28.42% to $4.4 billion. The persistent decline in trading activity suggests waning interest from both retail and institutional investors.
Death Cross Looms: Can Solana Avoid Further Bloodshed?
Technical analysts warn that Solana is edging closer to forming a dreaded “death cross”—a bearish technical pattern that occurs when a short-term moving average dips below a long-term moving average. Historically, a death cross has signaled further sell-offs and deeper losses for assets, and Solana appears to be treading dangerously close to this formation.
If the pattern confirms, analysts predict that SOL could face another wave of liquidations, exacerbating its downward trajectory. The bearish outlook has only fueled further uncertainty in the market, with many investors questioning whether Solana can reverse course before more damage is done.
For now, all eyes remain on Solana’s ability to stabilize above key support levels and reclaim lost ground. Without renewed buying pressure and a resurgence in network activity, the road ahead for Solana could be fraught with even more volatility.
