The crypto market took a hit over the weekend, and Solana (SOL) was no exception. Despite celebrating a record-breaking $258 billion in transaction volume in January, Solana’s price plunged nearly 30% from its yearly high, dropping to $210 on Sunday.
The sharp sell-off brought its market capitalization down to $103 billion, reflecting broader weakness across the digital asset space.
Solana’s retreat came as part of a wider downturn in the crypto market. Bitcoin (BTC), the industry leader, briefly fell below $100,000, while the total cryptocurrency market cap slipped by almost 4%, settling at $3.4 trillion. Despite its strong on-chain performance, Solana couldn’t escape the negative sentiment sweeping across the market.
Even with the price drop, January was Solana’s best month on record. Data from DeFi Llama shows that protocols within Solana’s ecosystem processed over $258 billion in volume, bringing the network’s total historical transaction volume to an impressive $969 billion. At its current pace—handling over $40 billion per week—Solana could cross the $1 trillion mark in February.
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Some of the biggest contributors to this growth were Orca, Meteora, Lifinity, and Raydium, with the latter recording a 30-day trading volume of over $120 billion.
However, active wallets on the Solana network declined, falling from 6.5 million on January 19 to 3.6 million by the end of the month. Meanwhile, the total market cap of Solana-based meme coins has also suffered, dropping from $25 billion to $14 billion in the past month.
Despite the price correction, Solana’s network activity and transaction volume remain strong, signaling continued demand for its DeFi and DEX ecosystem. If the current trend holds, the $1 trillion milestone could be just weeks away, potentially setting the stage for a price recovery.
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