Solana Enters a Low-Interest Phase Following November 2024 All-Time High

Solana Enters a Low-Interest Phase Following November 2024 All-Time High – Here’s What You Need to Know

The narrative surrounding Solana has changed dramatically, shifting from a spectacular rise to a complex struggle for relevance. After achieving a remarkable all-time high in November 2024, the network has faced challenges in regaining its earlier momentum. This slowdown indicates a technical exhaustion coupled with market adjustments following an aggressive price surge. As a result, SOL has entered a new period where investors are evaluating whether new demand will arise or if the network will need a new stimulus to reestablish its leadership in the cryptocurrency space.

Key Takeaways

Solana has seen a significant decline in interest following its all-time high of $296 in November 2024.
On-chain data shows that smaller retail wallets dominate buying pressure, while larger investors have begun retreating.
The correlation between SOL’s demand and the activity of memecoins suggests a dependence on the meme sector.
A dramatic drop in SOL's active monthly traders and revenue signals a challenging period for the network, indicating the need for a stronger foundation beyond memecoins to forge a path forward.

This analysis highlights Solana's current state and the factors influencing its future, focusing on the necessity for emerging demand and new catalysts to restore investor confidence.

Solana

Understanding the Decline in Solana's Momentum Post-November Peak

According to crypto trader Ardi, interest in Solana has significantly declined since it hit its all-time high of $296 in November 2024. On-chain analytics reveal that buying pressure has been largely influenced by smaller retail wallets, specifically those making purchases between $0 and $1,000.

Ardi suggests that while many analysts look to minor factors for the stagnant price action, the market trends indicate that distribution began before the peak. Selling volumes were rising for several months prior to October 10, hinting that larger investors had already begun planning their exits before the downturn. Data supports a noticeable division among different investor demographics.

Solana
Source: Chart from Ardi on X

In contrast, mid-sized wallets holding amounts between $0 to $100,000 and institutional wallets holding between $100,000 and $10 million have experienced a steady decline for about 13 months. Throughout this time, retail wallets have been on the rise, seemingly convinced that SOL is currently undervalued.

This situation raises a crucial question: Is the intrinsic value of Solana now connected to the popularity of memecoins? The correlation between demand for SOL and the activity of memecoins on the network has been striking, suggesting that without the excitement of the meme sector, there may be little interest for further investment.

The Future of Solana Lies Beyond Memecoins

Investor and trader Jas remarked that 2025 has undeniably been a period of recalibration for Solana, but it may not signal the end for the altcoin. Active monthly traders for SOL have plummeted from around 30 million to below 1 million, marking an astonishing 97% decline in network activity. The speculative engine that once thrived during the memecoin boom has revealed Solana's most significant weakness.

Moreover, SOL has dropped by nearly 58% from its yearly peak. The network's revenue has also seen a drastic fall, dropping five times year-over-year from $2.5 billion in 2024 to $500 million in 2025. This stark contrast becomes apparent when comparing it with Ethereum, which generated $1.4 billion in revenue this year and outperformed SOL by 56% year-to-date. “The future of SOL may depend less on memecoins and more on what comes after them,” Jas concluded.

Solana
SOL trading at $124 on the 1D chart | Source: SOLUSDT on Tradingview.com