Solana [SOL] is quietly testing its next move as risk-on flows return to L1s.
Technically, it’s lagging. It is down 35% this quarter. But the daily chart shows SOL at a critical inflection point. Since October’s crash, it’s formed its first higher low at $140, signaling the potential start of a recovery.
On-chain fundamentals back this up: Solana’s liquidity is rising, with stablecoin supply up 10% weekly. That’s nearly $1.3 billion in fresh liquidity, bringing the total back to early November highs of $14.33 billion.
Source: DeFiLlama
The question now is: Where is this liquidity going?
Interestingly, SolanaFloor recently noted a key divergence on-chain. Solana’s memecoin trading accounts for just 5% of SOL’s daily DEX volume, marking the lowest in two months. Yet, Solana still leads other L1s.
This hints that capital is rotating toward higher-conviction plays, favoring core infrastructure over speculative hype. Against this setup, could Solana be entering a phase where fundamentals finally start to lead the way?
Solana shows strength beyond price action
The market has been steadily diversifying into different sectors.
One of the fastest-growing areas is Real-World Assets (RWA), which are tokenized versions of assets traded on-chain. Solana is showing clear traction in this space, signaling adoption beyond crypto use cases.
According to data from RWA.xyz, Solana’s 30-day RWA value has jumped nearly 15%, putting it second among L1s in terms of month-over-month growth. Simply put, more real-world value is flowing onto Solana.
Source: RWA.xyz
The effect is showing on-chain as well.
Solana has recently surpassed Ethereum [ETH] in weekly active users, 11.1 million versus 2.6 million, highlighting that the network is seeing not just tokenized asset growth but broader, consistent engagement.
In essence, despite lagging prices, Solana’s fundamentals remain strong. With memecoin hype fading and liquidity rotating toward conviction plays, the L1 seems to be moving toward a more long-term growth trajectory.
Against this backdrop, SOL’s liquidity influx is a strong bullish signal.
Final Thoughts
- Solana liquidity is surging, with stablecoin supply up 10% weekly.
- Memecoin trading now accounts for only 5% of SOL’s daily DEX volume, signaling a rotation toward higher-conviction activity.
