Solana Network Sees Rising Activity Despite Token Price Drop

Posted On January 22, 2026

Solana slipped below an important price level this week, even as activity on the network picked up and a new $35 million fund for builders was announced. SOL struggled to hold the $140 area as sellers pushed prices lower during a shaky session for altcoins. The contrast between falling prices and rising usage has become more common in 2026, with networks getting busier while tokens move up and down.

Why Solana’s Price Is Falling While Usage Rises

This sounds strange at first, but price and usage often move on different timelines. Price reflects how traders feel in the moment. Usage shows how many people are actually using the network.

Solana’s usage keeps growing. Observer-Reporter says the total value locked in Solana apps climbed from $4.6 billion in late 2024 to about $12.2 billion a year later. That figure tracks how much money is held on exchanges and lending platforms. You can think of it like foot traffic in a shopping mall. More people inside usually means real interest.

Trading activity tells a similar story. Apps on Solana that let people trade directly processed about $111 billion in April 2025, up 14% from the month before, according to Blockworks Research. When activity stays high, developers pay attention, and new projects tend to follow.

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What the $35M Fund Says About Solana’s Ecosystem

The new $35 million fund is meant to support early projects building on Solana. These funds work like seed funding for teams developing apps, games, and payment tools. More funding usually leads to more builders, and more builders often lead to more people using the network.

This fits a longer pattern. Solana-based projects raised $173 million in the third quarter of 2024, the strongest period since 2022. Developers go where users already are, and users stick around when apps are fast and cheap to use.

That cycle helps explain why Solana keeps pulling in memecoin traders, finance apps, and payment experiments. We saw similar trends earlier this year across the Solana ecosystem.

What This Looks Like for SOL Holders

In the short term, falling prices hurt. Dropping below support levels can trigger automatic sell orders and nervous trading, further adding to the pressure. That helps explain why SOL slid even as activity remained strong, a pattern that also showed up during the recent Solana price decline.

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Over the long term, steady use gives serious projects something to build on. Networks with growing activity often recover faster once fear fades from the market. That does not mean prices bounce back right away, but it does mean Solana keeps its place while weaker networks struggle to hold attention.

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A Simple Risk Check

Busy networks do not guarantee higher prices. Tokens move based on trader behavior, available cash in the market, and developments in Bitcoin and stocks. When those turn cautious, SOL usually follows, no matter how active the chain is.

Solana also has a technical history that some traders still remember. Even after a year of smooth operation, past outages have not been fully forgotten. If stability slips again, prices tend to react quickly.

For beginners, the takeaway is straightforward. Strong usage lowers long-term risk, but price swings never disappear. If you buy SOL, keep position sizes sensible and avoid using money you might need soon.

For now, Solana sits in a familiar spot. Prices shake out impatient traders while builders and users keep showing up.

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