Solana, Despite 72-Dollar Recovery, Downtrend Suggested… On-Chain Demand is Weak

Solana's cryptocurrency SOL rebounded from a 64-dollar low to 72 dollars in a single day, but total deposits and decentralized exchange (DEX) volume showed signs of slowing momentum. According to CoinTelegraph, the recent rebound was influenced by a surge in tokenized equity trading on the Solana network. Jupiter Aggregator data showed 24-hour trading volume for Solana-based tokenized equities exceeded $113 million, driven primarily by AI sector activity. However, automated market maker pool liquidity remained thin, and concerns emerged about short-term upside potential due to multiple issuers launching similar products. Some tokens had limited holder bases due to recent launches. On-chain metrics remained mixed, with Solana's DeFi total deposits declining 11% over the past month, while Ethereum Layer 2 base narrowed the gap with Solana. xStocks saw a 31% increase in total deposits, contrasting with declines of 19% (Kamino), 20% (Binance Staking SOL), and 17% (Liquidity). DEX volume also fell, with Solana's weekly DEX volume dropping from $30 billion in early February to $10 billion, and decentralized app (dApp) revenue also declined. Despite new tokenized tech stocks and index products, blockchain processing demand for SOL remained unsustainably low. Revenue concentration also posed challenges, with 30% of Solana dApp revenue coming from token launch platform Pump.fun. CoinGecko reports indicate 80% of 18.7 million tokens were launched within 48 hours, and 55% of related addresses realized up to $1,000 in losses. Derivatives markets saw short-term optimism revive, with SOL perpetual futures funding rates reaching 10%—the highest since June—though this remains below the typical neutral 6-12% range. Some investors are also factoring in network airdrop expectations, with Only Reinsurance, Bulk, and LoopScale reporting total deposits of $200 million, $325 million, and $79 million respectively. However, the exact launch dates for these tokens remain uncertain.