Solana DApps Revenue Drops to 18-Month Low as SOL Price Risks Retesting $80 Level

The native SOL token of Solana has decreased by 11% in just three days after reaching a peak of $97.70. The correction to $87 on Thursday triggered approximately $25 million in long positions being liquidated, significantly dampening trader sentiment. Data from the derivatives market indicates that downside risk still dominates, while bulls have yet to show decisive action, increasing the likelihood of the price testing the $80 support zone.

Fuding rate of the perpetual SOL futures contract | Source: Laevitas.ch The funding rate of the perpetual futures contract has remained near 0%, reflecting a clear weakening in demand for long positions. Over the past month, the bears have maintained an advantage in leverage — a rare development in the typically optimistic crypto market.

Options Market Signals Caution

Indicators from the options market show that professional traders are not expecting to hold the $87 level firmly. The delta spread (call options – put options) has risen to 12%, indicating that put options are priced higher than call options. This reflects a defensive sentiment among whales and market makers in anticipation of downside risk, even though SOL is still about 70% below its all-time high.

30-day delta skew of SOL options (call – put) on Deribit | Source: Laevitas.ch A key factor behind this trend is the weakening of the decentralized application (DApps) sector.

Weekly network fees on Solana (green) versus DApps revenue (pink), USD | Source: DefiLlama## Decline in DApps Revenue, Increasing Competition

DApps revenue on Solana has fallen to its lowest in 18 months, down to $22 million from $36 million two months ago. This trend is not limited to Solana — DApps revenue on BNB Chain also declined by 52% during the same period. However, competitive pressure in the perpetual futures trading sector is becoming more noticeable, with Hyperliquid gaining a clear lead.

Blockchain rankings by 7-day perpetual contract volume | Source: DefiLlama Although Solana remains the leader in DEX trading volume through platforms like Raydium and Orca, it lags in derivatives, where specialized blockchains like Hyperliquid, Edgex, Zklighter, and Aster now control over 80% of total volume.

Weak Onchain Data Prolongs Recovery

Weakening onchain activity combined with negative signals from the derivatives market are slowing SOL’s recovery. The launch of Hyperliquid’s licensed S&P 500 perpetual futures contract — developed and offered by Trade[XYZ] to users outside the US — may have diverted capital away from the Solana ecosystem.

Currently, SOL’s market cap stands at $51 billion, about 42% below BNB’s $88 billion. However, Solana still maintains an advantage in total value locked (TVL) with $6.9 billion, higher than BNB Chain’s $5.7 billion. Additionally, Solana’s network fees over the past 30 days reached $20.8 million, far exceeding the $9.1 million of its competitor.

Furthermore, some companies employing digital asset reserve strategies focused on SOL, such as Forward Industries and DeFi Development Corp., are currently unrealized losses, adding to the psychological pressure.

Overall, weakening onchain activity and cautious sentiment in the derivatives market suggest that a breakout above $110 may require more time to materialize.