Solana in Trouble! The Hidden Crisis Behind High Fees: SOL Price May Drop Again

Solana (SOL) has recently shown weakness, with a price decline of nearly 3%. Although there was a slight rebound in the short term, the market outlook remains uncertain.

Transaction fees on the Solana chain have reached a new high of $1.4 million, which usually indicates increased network activity. However, analysis shows that the fee increase is actually driven by a large amount of selling. In the last 24 hours, the net flow on the chain has turned negative, indicating active sellers, resulting in approximately $1.9 million worth of SOL being sold.

Moreover, Solana's network activity has significantly decreased, with active addresses and transaction volume dropping sharply, indicating weak demand. Daily active addresses have fallen to 3.2 million, and the number of transactions has also greatly reduced. This suggests that investors may have shifted their funds to other networks, leading to a decline in SOL demand.

At the same time, the total value locked (TVL) in the Solana ecosystem has also declined, dropping from $8.039 billion in May to $7.825 billion, indicating that $214 million of SOL has been unlocked and re-entered the market. This has exacerbated the oversupply, further pressuring the SOL price.

If this trend continues, the SOL price may face greater downside risks and could fall back to previous lows.