Fee Increase on Solana Not Reflected in Price: High Revenue, Decreasing Participation

While general sentiment in the crypto market continues to remain weak, although transaction fees on the Solana (SOL) network have risen, the decrease in on-chain activity and investor behaviors are bringing some risk signals.

High Fees, Low Participation: Conflicting Signals

In the last 24 hours, the Solana network generated approximately $1.4 million in transaction fees, making it the leader in this area, but during the same period, there was a sharp decline in user activity. In an assessment by COINOTAG, it was noted that "High fee revenue is not always a bullish signal," emphasizing that increased transaction fees are mostly due to selling pressure.

Chain data also supports this view. In the last day, net outflows were observed on the SOL network, and tokens worth $1.9 million were transferred to exchanges. This situation shows that investors are in a selling trend and that pressure on the price may continue.

User Activity is Gradually Weakening

The trading volume and user participation on the Solana network are also in a downward trend. The number of daily active addresses has fallen below 3.2 million, while the number of daily transactions has decreased to 97.3 million. This suggests that investors may be moving away from Solana and towards alternative networks. This weakness could bring a similar decline in SOL price back into focus.

Liquidity Outflows Increase Price Pressure

On the other hand, there is also a significant liquidity outflow in Solana-based protocols. The Total Value Locked (TVL) has decreased from the level of $8.039 billion reached in May to $7.825 billion, indicating that approximately $214 million worth of SOL has returned to the market. This outflow is creating additional pressure on prices due to a combination of increased supply and decreased demand.

Conclusion: Cautious Waiting Process

In summary, although the increase in transaction fees may seem positive at first glance, the decrease in the number of users, the liquidity leaving the chain, and the overall market sentiment continue to pose risks for Solana in the short term. If the current trend continues, the downward pressure on the SOL price may intensify in the coming days.


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