Key Insights
- Ethereum overtook Solana in April DEX volume, while Solana DeFi platforms released nearly 18 million SOL tokens into circulation during recent weeks
- Open interest on Solana futures climbed to $1.89 billion, signaling stronger trader activity and renewed expectations for near-term gains this month
- Technical indicators showed bullish momentum strengthening as traders watched the critical $93 resistance level ahead of the planned Alpenglow upgrade next quarter
Solana remained below the $100 level despite a broader recovery across major cryptocurrencies during the past several weeks. Bitcoin traded above $80,000 while Ethereum held above $2,000, yet SOL continued to move near the $92 range as investors tracked weaker activity across its decentralized finance ecosystem.
Data from DeFiLlama showed Ethereum moved ahead of Solana in monthly decentralized exchange trading volume during April. Ethereum processed $44 billion in DEX activity compared with $42 billion on Solana. However, May figures still reflected a close race between both networks as Solana handled $12.20 billion while Ethereum processed $12.05 billion.
TVL Decline Adds Pressure
The total value locked across Solana-based DeFi protocols also dropped sharply during recent weeks. Locked assets fell from 81 million SOL tokens to nearly 63 million tokens after around 18 million SOL entered circulation from DeFi platforms. Consequently, traders monitored the larger token supply as market demand remained weak across several digital assets.
Besides weaker DeFi activity, analysts linked the slower momentum to cautious market conditions and reduced speculative trading. The additional supply entering the market increased pressure on short-term price performance and limited stronger recovery attempts above the $93 resistance area.
Institutional Interest Stays Active
However, Solana continued to attract attention outside decentralized finance through partnerships tied to tokenization and stablecoin infrastructure. Reports linked Solana with Bullish on tokenization projects while Western Union explored stablecoin-related developments connected to the network. Additionally, traders monitored these efforts as potential drivers for broader blockchain adoption.
Open interest data from Coinglass also reflected stronger speculative activity around SOL futures positions. Open interest climbed to $1.89 billion, which marked its highest level since March and signaled growing expectations for another upward move in price.
Technical Setup Signals Breakout
Short-term technical indicators suggested buyers retained control despite recent volatility around the $93 resistance level. Analysts identified a bullish flag formation on the hourly chart with projections pointing toward a possible move to $100 if buyers break above resistance.
Moreover, the relative strength index stood at 66 after retreating from overbought conditions, leaving room for additional upside momentum. Bollinger Bands also tightened around the current range, signaling that traders expected a larger directional move soon while attention remained fixed on the upcoming Alpenglow network upgrade planned for the third quarter.
