Solana Loses Ground in October Despite High Network Activity

In October, SOL depreciated by more than 15% and fell below the key level of $100. The asset's capitalization dropped by more than $10 billion to $58 billion, which, amid growing macroeconomic uncertainty, could trigger a new panic sell-off. The question is whether the weakness is caused by the overall decline of altcoins against Bitcoin or by capital outflow specifically from Solana.

The chart shows that capital is leaving altcoins in general: SOL/BTC lost more than 11% over the month, threatening the worst monthly result since November 2025. Essentially, Solana's weakness appears more macroeconomic than network-related. This is confirmed by Token Terminal data: the network has over 9 billion transactions per month, with activity holding around 10 billion. This indicates that network activity remains high despite the price correction, potentially creating conditions for SOL's undervaluation if risk sentiment returns.

Liquidity is leaving

Strong liquidity in the network usually indicates healthy fundamental indicators of any first-level blockchain. Solana presents a different picture: TVL fell by 10.28%, from $6.42 billion to $5.76 billion. For Ethereum, during the same period, TVL decreased by 8.42%, from $95 billion to $87 billion. Thus, liquidity is leaving Solana faster than Ethereum.

The pressure is also intensified by the capitalization of stablecoins in the network: it is declining from the peak of $16 billion at the beginning of October. Despite high user activity, more capital is not entering the network – this is evident from the drop in TVL and stablecoin liquidity. Less capital is being locked and used in DeFi, which could pressure SOL.

Solana's weakness goes beyond general market pressure: the network also faces its own headwinds related to capital outflow from DeFi. Until capital flows stabilize and new liquidity arrives, SOL may remain under pressure even with strong network activity.