Solana’s native token, SOL, has dropped 10% in the past week, retreating from a local high of $185 to around $163 as of May 30. While network fundamentals remain strong, investor sentiment is being tested by fading memecoin activity, MEV-related concerns, and an upcoming $600 million token unlock.
Despite the correction, Solana maintains its position as the second-largest blockchain by total value locked (TVL) with $11 billion — a 14% gain over the past month. Yet, Ethereum continues to dominate the space with robust growth across its Layer-2 networks.
On the upside, Solana has outpaced Ethereum in DEX trading volume over the last 30 days, registering $94.8 billion compared to Ethereum’s $64.8 billion. It also led in network fee revenue, pulling in $48.7 million, suggesting greater value capture despite Ethereum’s broader ecosystem.
However, bears are pointing to Ethereum L2s gaining traction — with $59.2 billion in DEX volume — and upcoming SOL unlocks totaling 3.55 million tokens between June and August. Many of these tokens are linked to FTX/Alameda’s holdings, acquired at far lower prices, which could increase sell pressure and cap upside potential.
Another thorn in Solana’s side is maximum extractable value (MEV), with Paradigm researcher Dan Robinson calling it the network’s “biggest problem.” MEV allows validators to reorder transactions, raising concerns about fairness and user experience.
The recent decline in Solana memecoins has also contributed to weakening momentum. Tokens like TRUMP, FARTCOIN, and POPCAT have dropped between 17–24% in the last week, signaling reduced speculative interest.
While Solana’s onchain metrics remain healthy, analysts warn that the combination of upcoming token unlocks, MEV issues, and memecoin fatigue could limit SOL’s near-term recovery — with the $200 level looking increasingly distant.
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