Solana (SOL) is quietly positioning itself for a potential rebound as risk-on flows return to Layer-1 (L1) blockchains. Despite underperforming in price, the network is showing signs of renewed strength, both technically and on-chain.

Technical Setups Point to Recovery

$SOL has lagged this quarter, down roughly 35% since the start. However, the daily chart indicates that the token may be approaching a critical inflection point. Following October’s crash, Solana has formed its first higher low at $140, a classic signal that a recovery could be underway.

On-Chain Fundamentals Support the Move

Liquidity on Solana is rising steadily. The network’s stablecoin supply has increased by 10% weekly, totaling nearly $1.3 billion in fresh inflows. This brings Solana’s total liquidity back to early November highs of $14.33 billion.

A key question arises: Where is this liquidity being deployed?

Recent data from SolanaFloor reveals an interesting divergence. Memecoin trading now accounts for just 5% of SOL’s daily DEX volume the lowest level in two months. Yet, Solana continues to outperform other L1 networks. This trend suggests capital is rotating toward higher-conviction projects, favoring fundamental infrastructure over speculative hype.

SOL Strength Beyond Price Action

The broader crypto market has been diversifying into multiple sectors, with one of the fastest-growing being Real-World Assets (RWA) tokenized versions of physical assets traded on-chain. Solana is making significant strides in this space, indicating adoption beyond traditional crypto use cases.

Data from RWA.xyz shows Solana’s 30-day RWA value has jumped nearly 15%, ranking it second among L1s in month-over-month growth. In addition, Solana has recently surpassed Ethereum (ETH) in weekly active users, with 11.1 million versus ETH’s 2.6 million. This demonstrates the network is seeing not only tokenized asset adoption but broader, consistent engagement from users.

Long-Term Implications

Despite its lagging price, Solana’s fundamentals remain robust. With memecoin hype waning and liquidity flowing into projects with stronger conviction, the network appears to be transitioning toward a long-term growth trajectory. The recent influx of $1.3 billion in liquidity is a bullish signal that could underpin the next leg of SOL’s recovery.

Final Thoughts

Liquidity surge: Stablecoin supply up 10% weekly, totaling $14.33 billion.

Shift to fundamentals: Memecoin trading now accounts for only 5% of SOL’s DEX volume.

Growing adoption: Solana’s RWA activity and weekly active users continue to climb.

All indicators point to a network that is steadily building strength behind the scenes, even if price action has yet to catch up. For investors watching Layer-1 adoption and capital rotation, Solana may be quietly setting the stage for its next major move.