Solana Plunges to Multi-Month Low Amid Market Downturn

Solana CRYPTO000SOL

The Solana blockchain network has experienced one of its most severe price corrections in recent months, with its SOL token falling below the psychologically significant $100 threshold. This drop marks the asset's lowest valuation in over a year, representing a decline of approximately 60% from its peak in the fall of 2025.

SOL's downturn is occurring within a context of broad-based selling pressure across digital asset markets. Bitcoin briefly touched $73,000, its lowest point in 15 months. The total market capitalization for all cryptocurrencies contracted by more than $70 billion within a single day, settling around $2.65 trillion. Against this backdrop, Solana shed over 23% of its value in the past week alone.

Currently trading between $91 and $97, SOL's price stands in stark contrast to its performance in early 2025, when it surpassed $250.

Institutional Interest Provides a Counter-Narrative

Despite the sharp price decline, institutional engagement with Solana appears resilient. Since October 2025, a dominant 78% of all ETF inflows have been directed into the Bitwise BSOL ETF. Collectively, ETF structures now hold over one percent of SOL's total supply, with an additional nearly three percent held in corporate digital asset treasuries.

A recent partnership announcement underscores this institutional focus. On February 5, Sharps Technology revealed a collaboration with BitGo Bank & Trust for regulated custody, staking validation, and over-the-counter trading services. Sharps has already added more than two million SOL tokens to its corporate treasury.

Analyst Maintains Long-Term Bullish Outlook

Investment bank Standard Chartered remains optimistic about Solana's long-term trajectory, even as its analysts adjust near-term expectations. Strategist Geoffrey Kendrick has revised his year-end 2026 price target down from $310 to $250. However, his projections for subsequent years remain substantially higher, forecasting $400 in 2027, $700 in 2028, and $1,200 by 2029.

This sustained optimism is rooted in a perceived shift in Solana's fundamental use case. While nearly half of all network fee revenue in 2025 came from speculative meme-coin trading, stablecoin transactions now dominate activity on the chain. In fact, Solana's stablecoin trading volume has already exceeded that of Ethereum.

Micropayments Emerge as a Growth Driver

The network's characteristically low transaction fees—often fractions of a cent—are making it an attractive platform for micropayments. This utility is being leveraged by major players like Coinbase, which uses Solana for its x402 platform to process AI-driven payments averaging six cents each. This evolution from speculative trading to tangible utility could form the foundation for a more sustainable valuation model.

The combination of persistent institutional interest and a shifting use-case profile may provide medium-term support for Solana. In the short term, however, volatility is expected to persist, largely dependent on broader market sentiment and Bitcoin's price direction.