Despite the recent cooling fluctuations in the market, the Solana [SOL] blockchain continues to exhibit robust network activity. In November and earlier this month, the strengthening of bearish forces became the dominant factor leading to a calmer market sentiment.
Examining the significant leap in Solana's recent activity, it is evident that its operational status remains solid. Notably, the total value locked (TVL) in the network has surpassed the previous record set in 2024, reaching a new milestone of 55.37 million SOL. Given the frequent fluctuations in SOL prices, measuring TVL changes in SOL rather than USD is undoubtedly more realistic and accurate.
The positive growth of TVL is often closely linked to long-term optimistic expectations and the healthy development of network activity. Although market sentiment has recently declined, Solana's on-chain transaction volume remains high. Over the past two days, its average daily transaction volume has climbed to over $3 billion.
The trading data of Solana further confirms the ongoing growth of network activity. The number of transactions has shown an upward trend over the past few months, peaking at 67.77 million transactions (TXS) in the last 24 hours. This figure represents a new high for Solana's network transaction volume in the past 11 months.
Is SOL ready for a strong comeback?
The recent surge in network activity may indicate an organic demand spike for Solana's native cryptocurrency. However, the overall market performance has been poor, especially in the past week, and Solana's native cryptocurrency has not been spared.
Last week, SOL fell from its peak to its lowest point, with a decline of 23%. However, this also means it retested an important level. Prices have been hovering between the 0.5 and 0.618 Fibonacci retracement levels, based on the lows of September and the highs of November.
The RSI has nearly fallen into the oversold territory during the recent decline. This may suggest further drops in the coming days. However, at the time of writing, prices have shown signs of bearish fatigue.
If a rebound from the Fibonacci range is anticipated, traders should look for some signs. So far, bearish momentum has weakened. However, it's worth noting that the spot capital flow remains negative, although the intensity of outflows has decreased over the past four days.
The decrease in spot outflow may pave the way for a recovery. However, the derivatives market also indicates that SOL may not yet be ready for a strong comeback.