Solana Surges in DEX Volumes: Can SOL Reclaim $180 Next?

Solana’s Path to Recovery: Can SOL Rebound Amid Memecoin Cooldown and ETF Hopes?

Solana, the blockchain network known for its high-speed and low-cost transactions, has faced turbulence in recent weeks as its native token, SOL, fell 15% after failing to reclaim the $168 level on June 12. The decline reflects broader uncertainty within the crypto markets and a noticeable reduction in network activity, especially in the once-booming memecoin sector.

Yet, a deeper look reveals a more complex story of resilience and potential recovery, with Solana regaining its footing in decentralized exchange (DEX) volumes and the crypto community’s eyes turning toward a critical catalyst on the horizon: the potential approval of a Solana spot exchange-traded fund (ETF) in the United States.

Solana’s DEX Activity Surpasses Ethereum, Despite Broader Market Weakness

Data from DeFiLlama indicates that Solana’s DEX ecosystem recorded $64.1 billion in trading volume over the past 30 days, surpassing Ethereum’s $61.4 billion in the same period. This marks a significant reclaiming of market share, particularly given that BNB Chain remains the leader with $159.6 billion.

Key players driving this activity on Solana include Raydium, with $19.1 billion in volume, Pump.fun at $14.2 billion, and Orca at $13.9 billion. These platforms have contributed to a steady, albeit cautious, optimism within the Solana community.

However, it’s important to recognize that this growth is taking place against a backdrop of significant decline from January’s levels, with current DEX volumes on Solana down 91% from earlier highs. The numbers suggest that while Solana’s infrastructure remains active, broader market participation has not yet returned to previous peaks.

Memecoin Hype Fades, Weighing on Solana Sentiment

Much of Solana’s recent narrative has been intertwined with the rise and fall of the memecoin sector. Popular tokens such as Giga, Popcat, Fartcoin, PNUT, Bonk, and WIF have experienced significant corrections, with price drops ranging from 25% to 42% over the past 16 days.

This sharp decline in memecoin prices has cooled enthusiasm around Solana’s rising DEX volumes. While these tokens brought substantial liquidity and new users to Solana’s ecosystem during their peak, their decline has underscored concerns about the sustainability of activity driven primarily by speculative interest.

The Rise of Hyperliquid: A New Competitor in the DeFi Arena

Adding to Solana’s challenges is the emergence of Hyperliquid, a blockchain platform that has rapidly become the dominant player in perpetual futures trading. Hyperliquid’s 30-day trading volume was reported to be 84% higher than the combined volume of its five largest competitors, capturing attention across the DeFi landscape.

The platform’s success has sparked speculation that other projects may consider launching their own independent blockchains to capture similar momentum, including major Solana-based decentralized applications (DApps) like Pump.fun. This development has raised questions about Solana’s long-term dominance within the DeFi sector, further dampening trader confidence in the network’s immediate recovery.

Derivatives Data Paints a Cautious Picture

In the derivatives market, confidence in SOL’s near-term upside appears muted. Perpetual futures typically exhibit an annualized funding rate of 5% to 12% for long positions in neutral conditions, while a negative funding rate indicates bearish sentiment as traders pay to maintain short positions.

Over the past 30 days, Solana’s derivatives data has shown a lack of sustained optimism, with funding rates trending toward neutral or mildly bearish, reflecting cautious positioning by traders amid ongoing macro and market uncertainties.

The ETF Catalyst: A Potential Game Changer

Amid the current challenges, the biggest potential catalyst for Solana remains the possible approval of a Solana spot ETF by the U.S. Securities and Exchange Commission, with a decision anticipated by October. Such an approval could provide a significant boost to SOL’s price by increasing institutional interest and providing a regulated avenue for broader market participation.

Past experiences within the crypto market, including Bitcoin’s ETF approval, have shown that such regulatory milestones often lead to increased liquidity and upward price momentum, particularly for tokens with robust technical foundations and active ecosystems.

Technical Strengths and Broader Use Cases

Despite recent associations with memecoins and speculative trading, Solana’s ecosystem has demonstrated its broader capabilities across DeFi, NFTs, and decentralized infrastructure applications. Davo, a core contributor at Drift Protocol, emphasized that Solana’s base layer enables “asset availability,” allowing tokens to be used natively as collateral across various DeFi applications.

Davo also highlighted the absence of an “off-chain matching engine” on Solana, a feature that provides greater transparency and protects users from transaction reordering, a concern often raised within DEX operations on other networks.

These technical strengths, combined with Solana’s low transaction fees and high scalability, position the network favorably for a recovery, even amid current headwinds. While newer platforms like Hyperliquid have demonstrated impressive growth, other emerging blockchains, such as Berachain, have struggled to maintain significant deposit levels, reaffirming Solana’s position as a resilient player within the crypto ecosystem.

Can Solana Return to $180 Before October?

The key question on the minds of many traders and investors is whether Solana can reclaim the $180 level before the anticipated ETF decision in October. Given the network’s strong technical foundation, active DEX environment, and continued development of new applications, such a recovery is within the realm of possibility.

Market sentiment will likely hinge on the broader crypto environment, including macroeconomic conditions, regulatory developments, and the ongoing narrative around blockchain utility beyond speculation. If Solana can continue to demonstrate growth in DEX activity while diversifying away from reliance on memecoin-driven liquidity, it may attract renewed interest from both retail and institutional investors.

Final Thoughts: A Crossroads for Solana

Solana finds itself at a crossroads, balancing between the challenges of declining memecoin interest and rising competition from platforms like Hyperliquid, while also standing on the cusp of a potential breakthrough with the ETF catalyst.

For traders, the coming months will be critical. Monitoring DEX volume trends, funding rate shifts in derivatives markets, and updates on the ETF decision will provide essential signals for SOL’s price trajectory.

While short-term volatility remains a reality, Solana’s scalability, low fees, and active developer ecosystem position it well for long-term resilience in the competitive landscape of decentralized finance.

If the ETF approval materializes and Solana continues to demonstrate real-world utility beyond memecoins, a return to the $180 level — and possibly beyond — may not just be a hope, but a realistic target as the network continues its evolution in the crypto market.

Disclaimer

The content published on nyohoka.com is for informational and educational purposes only. We do not recommend making financial, investment, or any other decisions based solely on the articles on this site. Always do your own research and consult with a professional before making any decisions.