Solana’s blockchain fundamentals demonstrate resilience with a 2.67% surge in Total Value Locked (TVL) over 24 hours, signaling robust on-chain activity. This growth highlights strengthening protocol usage despite challenging market conditions.
However, SOL’s market performance diverged sharply from its technical metrics, with the token’s price plummeting nearly 10% this week. This decline significantly underperformed against Ethereum, which maintained stronger price momentum during the same period.
The divergence extends to institutional activity, where Solana exposure increased 91% month-over-month according to investment data. Yet this substantial capital inflow only translated to an 11.57% price appreciation for SOL, dwarfed by Ethereum’s 48.76% surge over the same timeframe.
Market indicators reveal deepening challenges: The SOL/ETH trading pair collapsed 25% monthly, registering its weakest performance since 2022 amid shifting institutional preferences toward Ethereum. This preference stems from ETH’s superior returns and growing whale accumulation, with wallets holding over 10,000 ETH increasing even as institutional interest in Solana wanes.