Solana Price Falls, But On-Chain Metrics Point Up

While the crypto market is going through a downturn phase, Solana (SOL) drops below $130, sowing doubt among investors. However, behind this sharp drop, the on-chain data outline a very different scenario. Whales buying, supply free-falling on exchanges, network activity booming: the fundamentals remain solid. A marked divergence between price and network reality, which could reshuffle the cards faster than imagined.

Fundamental indicators suggest a recovery in the making

In a generally declining market, Solana’s case intrigues. The drop of the SOL price to around $120 in late December 2025 was seized as a buying opportunity by large addresses.

Thus, wallets holding between 1,000 and 10,000 SOL have significantly increased their positions since November. These investors now control nearly 48 million tokens, or 9 % of the circulating supply.

The heaviest wallets, those with more than 100,000 SOL, increased from 347 to 362 million tokens in two months, now representing 64 % of the circulating supply. This accumulation dynamic is supported by long-term holders, whose weekly net balance peaked at 3.85 million SOL on January 14, a level not seen for 15 months.

Several fundamental factors reinforce this bullish reading :

• The supply on exchanges is at a two-year low : as of January 17, only 26 million SOL were available on platforms ;

• Selling pressure is down : a drop in available liquidity means fewer tokens immediately accessible for sale ;

• Accumulation signals from major holders remain strong : large addresses continue to grow, indicating structural confidence in the network’s evolution ;

• The token distribution consolidates around long-term players : wallets with a long horizon seem to favor resilience over speculation.

These data reveal a growing gap between short-term dynamics, driven by price, and underlying signals observed in the ecosystem. A gap that upcoming market moves could gradually close.

Solana under pressure despite strong network activity expansion

Beyond the accumulation dynamic, Solana faces a more contrasted reality. Dropping below $130 also reflects a correction phase affecting the entire market.

This downturn fits into a post-rally sequence where many altcoins undergo profit-taking. Such a context mechanically weighs on the crypto price, regardless of fundamentals. This recent drop marks the first dip below $130 since January 2, 2026, highlighting increased technical fragility.

Yet, network fundamentals are accelerating. The number of daily active addresses jumped 51 % over the last week, crossing 5 million, according to Nansen data. The daily transaction volume also rose 20 %, reaching 78 million operations by January 16.

At the same time, the supply of stablecoins hosted on the Solana network exploded by 15 % in seven days, hitting a record $15 billion. According to analysis relayed by Milk Road, this rise in stablecoins “represents new liquidity entering the network”, meaning more capital available for trading and decentralized application use.

Solana falters below $130, but fundamental signals remain solid. While the market undergoes a correction, whales rush in despite the price drop, betting on a recovery supported by network activity. This price/fundamental gap could announce a faster turnaround than expected.