Solana Marks Five Years Since Its Inception

Solana marks its fifth anniversary as a comprehensive ecosystem but is currently facing a major downturn with DEX volumes and investor conviction declining amid cooling sentiment.

Once regarded as the breakout star of the post-pandemic crypto era, Solana (SOL) is now at a critical crossroads. Despite its initial promise and growth, it is grappling with serious challenges as it marks a significant milestone.

A Celebratory Note

Launched in March 2020, Solana emerged with unmatched speed and scalability, positioning itself as a next-gen Layer 1 chain designed for mass adoption. Supported by a strong developer community and growing interest in decentralized finance (DeFi), it quickly gained traction, becoming a prominent choice for NFT projects and high-frequency trading platforms. Once hailed as the “Ethereum killer” with billions in Total Value Locked (TVL), Solana faces a stark change in its landscape after five years.

DEX Activity and Open Interest Decline

As Solana reaches this milestone, its on-chain performance reveals concerning trends. DEX volumes plummeted from a yearly high of $36 billion in January to nearly $1 billion by mid-March — highlighting a steep decline in trading activity and user engagement. Furthermore, open interest in SOL futures has decreased from over $5 billion to just above $3 billion amid stagnant price levels.

This downward trend raises questions about investor faith and the overall appetite for leveraged positions, adding to an increasingly alarming scenario.

Solana Price Perspective

At present, SOL trades at $128.81, marking a modest 2.15% daily gain. An RSI of 41 indicates weak bullish momentum far below the neutral 50 mark. Additionally, the On-Balance Volume (OBV) stands at 64.96 million, indicating a lack of significant buying pressure. Recent price action reflects a clear lower-high, lower-low formation since late February, reinforcing bearish sentiment. If bulls cannot reclaim the $140 mark convincingly, SOL risks further declines. The next significant support level sits around $120; breaching this could lead to sharper corrections.