Solana TVL Plummets by $5B in 30 Days

Solana's (SOL) price is currently trading 52% lower than its all-time high of $295 on Jan. 19. The 41% decrease in the last month is accompanied by a 40% decline in the total value locked on Solana, indicating potential further losses ahead. The total value locked (TVL) on the Solana blockchain has dropped by 39.2% in the past month, marking the largest monthly drawdown since November 2022. Solana's TVL has fallen from its peak of $12.1 billion on Jan. 24 to $7.4 billion currently. This decrease in TVL has impacted Solana's onchain volumes, which have decreased significantly in recent weeks. The drop in Solana's TVL also reflects a decline in memecoin market capitalization, with most Solana-based memecoins experiencing double-digit daily losses. The collective memecoin market cap on Solana has dropped from $25 billion in December 2024 to $8.3 billion today, representing a 68% decrease in less than three months. The decrease in memecoin activity on Solana suggests low network activity and declining usage, negatively affecting demand and SOL price. From a technical standpoint, SOL's price action has formed a double-top pattern on the daily chart, with the price currently sitting at immediate support around $135. The RSI indicator at 28 indicates oversold conditions, suggesting a potential entry point at $135 for a possible recovery in SOL price. Crypto analyst Gum believes that the lowest price SOL could reach is around $110 before a bounce.