#SolanaSurge $SOL experienced significant fluctuations in the first quarter of 2025. The price was around $300 at the beginning of the year, then plummeted to $112 on March 11, a decline of over 62% from January's historical high of $294.91.
Market Share
In terms of decentralized trading, Solana dominated the DEX trading market in the first quarter of 2025, leading with a market share of 39.6%, with a total trading volume of $293.7 billion. However, after the decline in Memecoin popularity, its DEX trading share dropped to 23.4% in March. Additionally, the total locked value (TVL) of DeFi protocols on the Solana chain decreased by 28% year-over-year, with market share being eroded by competitors.
Impact Factors
• Technical Issues: The Solana network experienced a large-scale outage that paralyzed on-chain applications for several hours, raising concerns about the vulnerability of its “Proof of History (PoH)” mechanism under extreme trading volumes.
• Competitive Pressure: The Ethereum 2.0 upgrade reduced transaction costs, while emerging public chains like Avalanche and Sui made breakthroughs in cross-chain interoperability and modular design, attracting developers and users, thus posing competition to Solana.