Key Takeaways:
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SOL fell to 2026 lows as layoffs within the tech sector and concerns about artificial intelligence revenue hit markets.
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Despite the gloomy environment, Solana outperformed the competition with an 81% increase in network fees, securing its runner-up position.
Solana's native token, SOL (SOL), fell to $100.30 on Saturday, hitting its lowest level since April 2025. While the 18% price correction in 30 days surprised traders, the move largely reflected broader trends in altcoin market caps. A 26% plunge in silver prices on Friday further prompted cryptocurrency traders to brace for further downside.
SOL/USD (orange) vs. altcoin market cap (blue). Source: TradingView
SOL managed to reclaim $102 on Saturday, but sentiment remained weak after $165 million in leveraged bullish positions were forcibly liquidated. Sentiment worsened amid escalating tensions in Iran and fears of an economic downturn after Amazon (AMZN US) announced on Wednesday it will cut 16,000 white-collar jobs.
Investors became more risk-averse once they learned that OpenAI accounted for 45% of Microsoft's (MSFT US) Azure cloud computing backlog. Adding to the strain was a Wall Street Journal report that Nvidia (NVDA US) would now not invest $100 billion in OpenAI. According to The Information, the ChatGPT maker is anticipated to suffer a net lack of $14 billion in 2026.
Despite the gloomy socio-political environment, Solana's on-chain activity has outperformed its competitors and consolidated its position because the runner-up in network fees and total value locked (TVL). Healthy on-chain metrics provide a dual profit to the native token: increasing staking returns to incentivize long-term holding, while also creating constant demand for data processing fees.
Blockchains sorted by 30-day fees in comparison with current average. Source: Nansen
According to Nansen data, Solana’s network fees have risen 81% above trend over the past 30 days. Additionally, energetic addresses increased by 62% and transactions increased to 2.29 billion. In comparison, the Ethereum ecosystem – including Layer 2 solutions – recorded a complete of 623 million transactions, while Ethereum base layer fees only increased by 11%. Solana remained the clear leader within the decentralized application (DApp) space.
Demand for leveraged bullish positions on SOL disappeared as traders sought safety in money and short-term treasuries. Billion-dollar tech firms, including Unity (U US), AppLovin (APP US), Figma and HubSpot (HUB US), saw price drops of 30% or more in 30 days. Gold, normally considered a safe-haven asset, fell 13% from its all-time high of $5,600 hit on Thursday.
SOL Perpetual Futures annualized funding rate. Source: laevitas.ch
The annual funding rate for SOL perpetual futures fell to -17%, meaning short sellers (sellers) are paying to maintain their positions open. This condition is unusual, rarely lasts long, and indicates an extreme lack of leverage appetite on the a part of the bulls. The move coincided with political disputes over U.S. government funding.
The U.S. Senate approved a funding package on Friday, together with a two-week stopgap measure, to permit more time for federal funding disputes over Department of Homeland Security funding after Democrats voiced criticism over immigration enforcement. The US House of Representatives must vote on the ultimate version on Monday.
Publicly traded firms sorted by total SOL costs, USD. Source: CoinGecko
Solana spot exchange-traded funds (ETFs) recorded $11 million in net outflows on Friday, in accordance with CoinGlass. Meanwhile, publicly traded firms that use SOL as a company reserve strategy are under pressure. Shares of Forward Industries (FWDI US), Upexi (UPXI US) and Sharps Technology (STSS US) were trading 20% or more below their respective net asset values.
SOL's path to regaining upward momentum largely is dependent upon renewed confidence in global economic growth and reduced socio-political risks, which can not materialize within the near term.
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