In recent months, the cryptocurrency market has experienced unpredicted volatility. This has caused many to clutch their hypothetical pearls and pray for sturdier times. An exception to this is Solana’s Total Value Locked (TVL), which has recently celebrated reaching an all-time high. In reviewing these changing trends, Binance has proven to be an indispensable resource for tracking market price trends of new coins as well as well-established ones like SOL and BTC. SOL’s success has caused many to question the token’s price movements and what one should expect in the coming months.

Solana’s TVL Surge: By the Numbers

Deposits in Solana network’s decentralized applications (DApps) rose to 53.8 million SOL – or approximately $6.5 billion USD. This represents a 14% increase from the previous month and a $750 million lead on its nearest competitor, BNB Chain.

Solana’s blockchain highlights a diversity that many believe that the TVL ecosystem is maturing. TVL’s top DApps include Jito (focusing on liquid staking), Jupiter (a leading decentralized exchange), and Kamino (a lending and liquidity platform).

Despite this impressive growth, the SOL token has had several price challenges. SOL’s price dropped by 9% between March 28 and April 4, creating a significant difference between on-chain metrics and market valuation. This has raised questions about the token’s price, despite apparent network strength.

There are several factors that may explain this disconnect:

The April 4 staking unlock of 1.79 million SOL (worth over $200 million) created selling pressure, as these tokens were initially staked in April 2021 when SOL traded near $23.
Declining interest in memecoins – which had been driving new user adoption of Solana – has reduced speculation. With fewer speculative transactions, growth in network activity may not immediately equate to price gains.
The memecoin sector has been affected, with several Solana-based meme tokens – including WIF, PENGU, POPCAT, and others – experiencing declines of 20% or more in a week.

Solana’s growing influence in the decentralized finance (DeFi) ecosystem is its performance in decentralized exchange (DEX) volume. Per DefiLlama, Solana currently holds a 24% market share in DEX volumes, while BNB Chain accounts for 12% and Base captures 10%.

Despite a resurgence of Ethereum in DEX volumes, Solana has been resilient in light of the competitive environment. For example, Raydium’s weekly volumes dropped 95% from its $42.9 billion high in January, while Solana has largely held its ground.

The MEV Debate and Token Economics

The financial security of SOL may be belied by its economic model. SOL offers rewards through Maximum Extractable Value (MEV) – a methodology its supporters argue give the validators enough incentive to secure the network. This would – in theory – take off the pressure to on the network to inflate its growth and invite more users onboard.

This creates a situation where the validators effectively control the flow of transactions on the network, violating the notion of SOL being a trustless network. These concerns about MEV practices have sparked innovation. Loring Harkness, a core contributor to Shutter Network, advocates for encrypting transactions before they enter the mempool to prevent validators from manipulating transaction ordering for profit. This development could potentially improve network fairness and user experience.

Bitcoin’s Influence on the Broader Market

The market churn surrounding Bitcoin has influenced SOL. As Bitcoin is the largest cryptocurrency currently being traded, the actions of the coin is bound to have micro and macro-effects of SOL trading.

Bitcoin’s price performance has been influenced by a combination of factors in 2025. The recent Bitcoin halving, which reduces miner rewards and historically triggers price increases, has created what analysts describe as a “supply shock.” Michael Saylor of MicroStrategy anticipates this could lead to another bull market run in the coming months.

Market experts have differing opinions on the matter. Cathie Wood of Ark Invest has one of the most optimistic forecasts, predicting Bitcoin could reach $1 million within five years, driven by its finite supply and increasing adoption as a global store of value. This can potentially benefit the market, including Solana. However, Bloomberg Senior Commodity Strategist Mike McGlone has warned that Bitcoin could experience a significant correction, pointing to Wall Street’s retreat from risk assets as a major factor.

Conclusion

Solana’s achievement of a new TVL high – coupled with its impressive performance in DEX volumes – demonstrates the blockchain’s growing significance in DeFi. While the current price does not reflect the token’s potential, the difference between chain metrics and market valuation is giving investors much to consider.

As the cryptocurrency market continues to evolve, Solana’s focus on scalability, speed, and user experience positions it well for growth. However, investors should be cognizant of broader market trends, including Bitcoin’s influence and yje general market sentiment. These will likely continue to impact SOL’s price performance in the near future.

The current data suggests that Solana is in a position to make waves in the future, driven by a solid and strengthening ecosystem foundation.