Network Strength Fails to Offset SOL's 10% Plunge

Solana's native token SOL tumbled to $167 on May 23 after facing strong resistance at $185, marking its lowest weekly close. The 【10%】 drop has traders speculating whether the decline will deepen toward the $142 support level, despite Solana maintaining its position as the second-largest blockchain by total value locked (TVL).

TVL Growth Shows Mixed Signals

While Solana's $11 billion TVL represents a 【14%】 monthly increase, Ethereum continues dominating with its expansive layer-2 ecosystem. Notable performers include Raydium (48% deposit growth) and Marinade (28% TVL increase), though other DApps like Jupiter and Kamino showed more modest expansion.

DEX Dominance Meets Looming Supply Pressure

Solana's decentralized exchanges processed 【$94.8 billion】 in 30-day volume, surpassing Ethereum's $64.8 billion. However, the network faces a critical test with 【3.55 million SOL】 ($600 million) scheduled for unlocking between June-August. Analysts note these tokens originated from FTX/Alameda's bankruptcy estate at $64 per SOL, potentially capping price upside.

Validator Economics and MEV Risks

——The network's 8% staking yield outperforms Ethereum's 3%, but a 5.2% annual supply inflation dilutes returns——. More critically, Paradigm researcher Dan Robinson identifies MEV (maximum extractable value) as Solana's "biggest problem," with sandwich attacks and transaction reordering eroding trader confidence.

Memecoin Mania Cools Rapidly

Popular Solana-based memecoins suffered steep weekly declines: TRUMP (-24%), FARTCOIN (-20%), and PENGU (-17%). This cooling speculative interest coincides with 【$48.7 million】 in network fees over 30 days - surpassing Ethereum's $36.9 million despite its larger deposit base.

Outlook: Growth vs. Macro Headwinds

While Solana's technical advantages in mobile Web3 integration remain intact, the combination of token unlocks, MEV vulnerabilities, and fading memecoin hype creates strong resistance near $200. Market watchers suggest the network needs demonstrable progress on MEV solutions to sustain its TVL growth trajectory.