Record network activity boosts Solana's outlook

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Record network activity boosts Solana's outlook

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Mykhailo Ihnatenko

Yesterday

Record network activity boosts Solana's outlook

Solana continues to set new records for network activity and ecosystem revenue. However, weakness across the broader cryptocurrency market is preventing these strong fundamentals from translating into sustained price appreciation.

The biggest recent development was the launch of Solana Governance Proposals (SGP), a new on-chain governance system that allows validators and delegators to participate directly in decisions regarding the network's future. The initiative marks one of Solana's most significant steps toward greater decentralization and is expected to make the ecosystem more attractive to institutional participants.

Meanwhile, the network's fundamental metrics continue to reach new highs. Over the past 30 days, Solana processed 3.77 billion non-vote transactions, the highest monthly total in the blockchain's history. In addition, applications built on Solana generated $257 million in revenue during the second quarter, allowing the network to remain the leading Layer 1 blockchain by dApp revenue for the ninth consecutive quarter.

Despite these strong fundamentals, SOL has yet to stage a meaningful rally. The primary reason remains the weakness of the broader cryptocurrency market and the continued outflow of institutional capital from digital assets.

Solana breaks above key resistance

On the daily chart, SOL has successfully broken above its medium-term descending trendline and the 50-day simple moving average (SMA) in the $76–77 zone.

The next key resistance level is the psychological $80 mark. If the price manages to establish itself above this level, the probability of a move toward the $83–88 range will increase significantly.

Despite the strong fundamental backdrop and the technical breakout, trading volume has remained relatively unchanged, suggesting that the short-term uptrend is still fragile.

For now, the expected trading range is $76–80, with a retest of support appearing more likely due to the lack of strong buying volume.

Weak market sentiment limits Solana's upside

Solana remains highly correlated with the broader cryptocurrency market, which continues to limit its medium-term upside potential.

Institutional investors have yet to show meaningful signs of returning to the crypto market. As a result, the current rally is still best viewed as a technical rebound within a broader medium-term downtrend, rather than the beginning of a new bullish cycle.

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