Santiment: Solana’s expansion offers optimism amid challenges

crypthub

about 18 hours ago

Price Pressure and Market Sentiment

SOL trades around $84, down 35% in the past month and over 50% year‑to‑date after a steep decline from its September 2025 peak. A 25% weekly drop to $96 sparked warnings that slipping below $100 could expose the token to $74 or lower levels. Short‑term data show modest rebounds of 3% in 24 hours and 6% in seven days, but technical signals are mixed, with some seeing a bearish break near $80 and others a potential rally toward $114. Negative funding rates indicate many traders are shorting SOL, a pattern that can precede short squeezes.

Security Patches and Infrastructure Issues

In January, critical vulnerabilities prompted a call for validators to upgrade to Agave/Jito v3.0.14; over half remained on older versions, leaving the network exposed. February witnessed a routing disruption that forced U.S. traffic through Europe and Asia, highlighting the sensitivity of Solana’s high‑speed chain to milliseconds of latency. These operational frictions have drawn market attention to the validator set’s ability to maintain uptime and protect DeFi funds.

User Activity and Development Outlook

Despite the price slump, daily wallet creations rose in February, suggesting continued user interest. Exchange flows show net outflows, implying holders are moving tokens off‑platform rather than actively selling. New projects like Zora’s migration from Base to Solana, charging 1 SOL per creation, reflect ongoing developer engagement. Overall, Solana exhibits a mixed picture of declining price and hype, yet sustained onboarding and short‑seller positioning indicate participation remains.