Solana hovers around $220 as daily transactions plummet 50%, but ETF hopes spark bullish sentiment.

Solana’s price remains stable around $220 amidst market volatility, bolstered by optimism surrounding potential ETF approvals. However, the network has seen a significant drop in daily transactions, highlighting contrasting trends in market activity.

Solana Experiences a 50% Drop in Daily Transactions

A recent report from CryptoQuant reveals a sharp decline in the daily transactions of Solana, which have plummeted nearly 50% since reaching a peak in July. This downturn is attributed to decreasing investor engagement, even as the price of SOL has surged by over 20% during the same period.

The data indicates a drop from approximately 125 million transactions on July 24 to about 64 million currently. CryptoQuant has noted that this decline may signal potential capital outflows and reduced participation from retail investors.

Solana Chart Analysis: A Nearly 50% Drop in Transactions Amidst Price Rally

“The daily transaction volume has plummeted from its peak of approximately 125 million on July 24, 2025, to a current level of around 64 million.” – By @CryptoOnchain

— CryptoQuant.com (@cryptoquant_com) October 9, 2025

Analysts have expressed skepticism about the sustainability of the recent price increase, suggesting that it is more likely driven by market speculation rather than a fundamental rise in network demand.

Solana’s Price Outlook and Market Sentiment

Despite the decline in transaction volume, SOL has remained above $200, with current trading figures hovering around $220. Market observers note increased whale accumulation and the anticipated approval of a Solana spot ETF as major factors influencing bullish sentiment.

Technical indicators also support this bullish view, with the daily chart showing the 50-day moving average trending upwards and providing dynamic support above $217. However, the relative strength index (RSI) currently sits at 46, indicating a neutral momentum that could prompt buyers to adjust their positions to avoid further declines.

A decisive close above $230 could negate bearish patterns, with $236 to $255 identified as critical resistance zones. The following chart illustrates these trends.

Market Dynamics Affecting Solana

Market observers highlight the maturation of Solana’s infrastructure and increasing institutional interest as vital components of its recent performance. Despite ongoing government shutdowns in the U.S., prospects for the approval of Solana spot ETFs continue to loom large.

Should the SEC authorize multiple ETF applications soon, the price of SOL is expected to surge significantly. Eric Balchunas, a Bloomberg ETF analyst, remarked on the competitive fee structure proposed by Bitwise for their Solana ETF:

Bitwise not playing around, plans to charge just 0.20% for their spot Solana ETF. Thought we’d see higher first, need war to get this low.

— Eric Balchunas (@EricBalchunas) October 8, 2025

Additionally, inflows into Solana-related cryptocurrency products have surged, setting a new record with an influx of $706 million last week alone. As decentralized finance (DeFi) dominance increases, the price of Solana is increasingly decoupling from short-term fluctuations, sustaining a total locked value above $32 billion and open interest reaching $14.7 billion.