Solana’s 50% Network Activity Plunge Sparks Bubble Fears Among Analysts
Network metrics flash warning signs as Solana experiences dramatic usage decline.
The Activity Exodus
Solana's blockchain activity collapses by half—raising eyebrows across crypto trading desks and research firms. Transaction volumes plummet while developer engagement shows similar contraction patterns.
Analyst Anxiety Peaks
Market watchers point to the 50% drop as potential confirmation of unsustainable growth models. The same metrics that fueled last year's rally now trigger bubble concerns among institutional observers.
Ecosystem Strain
DeFi protocols and NFT marketplaces on the network report corresponding usage declines. The correlation between network activity and token valuation creates perfect storm conditions for volatility.
Just another day in crypto—where yesterday's revolutionary breakthrough becomes today's concerning metric. The only thing dropping faster than network activity might be analyst confidence.
Is the SOL rally built on hype?
According to the CryptoQuant report, Solana price has climbed from late September lows of $191 to trade near $230 this week. The divergence of rising prices alongside falling usage caught analysts’ attention. They added that in a healthy uptrend, prices usually move in line with growing network demand. However, in this case, the opposite is happening, which suggests that speculation and not fundamentals may be driving the rally.
The full picture depends on the type of transactions that have dropped. The report mentioned that around 80–90% of Solana’s total transactions are “voting” transactions. They were tied to its consensus mechanism. If the decline is mostly from those, then it might not be a red flag.
It added that if user activity in DeFi, NFTs, and transfers is falling, then it raises questions about how sustainable the current price MOVE really is.
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 pic.twitter.com/8MgIAb8p9i
— CryptoQuant.com (@cryptoquant_com) October 9, 2025
Solana price recorded a marginal dip over the last seven days. SOL is still running up by 18% on a year-to-date (YTD) basis. It is trading at an average price of $222.4 at press time. Its 24-hour trading volume hovers around $8 billion.
Solana ETF approval odds hit 99%
This can be a big week for Solana as the final decision on spot SOL ETFs might be just days away. On Polymarket, traders are assigning over 99% odds to approval this year. Bloomberg ETF analysts Eric Balchunas and James Seyffart now see a 100% probability of approval. They cited clearer regulatory guidance and leadership changes at the SEC.
Analysts believe that approval could open the floodgates for institutional demand. This would be the same catalyst that previously helped both Bitcoin and ethereum reach record highs.
Meanwhile, Bitwise just amended its Solana ETF filing. Cryptopolitan reported that the asset manager is setting a 0.20% annual management fee and adding a staking feature. Balchunas described the move as a “veteran Terrordome play,” noting it could trigger fierce competition among issuers.
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