Solana Sees Record Activity Amid Governance Push as SOL Tests Support

Solana (SOL) hovered just above the low-$70s on Thursday, as traders weighed a fragile technical setup against a burst of on-chain activity and a renewed push for 'governance reform' and network speed improvements.

As of Thursday 1:00 a.m. ET, SOL traded at $73.09, down 0.8% over the past 24 hours. Spot trading volume was about $1.5 billion, while Solana’s market capitalization stood near $42.2 billion, keeping it in seventh place among major cryptocurrencies.

From a technical perspective, near-term sentiment remains cautious. FXStreet said SOL continues to show a bearish bias while trading below $75, with resistance clustered around $75.50 and $92.60. On the downside, the key support level sits near $70.75. Analysts noted that a convincing daily close above resistance would likely be required for SOL to reclaim its 200-day exponential moving average—often viewed as a dividing line between longer-term bullish and bearish regimes.

Beyond price action, the ecosystem saw a potentially negative headline: prediction market platform World.xyz decided to migrate from Solana to Robinhood Chain after an internal review, according to Odaily. While project moves between chains are not uncommon, the shift has fueled debate about Solana’s ability to retain applications as competition among high-throughput Layer 1 networks intensifies.

Institutional positioning has also been mixed. Odaily reported that U.S. spot Solana exchange-traded funds recorded roughly $605,100 in daily net outflows, even as cumulative inflows and total assets under management remained positive. The divergence suggests that interest has not disappeared, but near-term positioning may be turning more tactical as volatility persists across the altcoin market.

At the same time, Solana’s community is advancing proposals aimed at reshaping token economics. BingX said governance proposals SGP0002 and SGP0003 have met a 15% stake support threshold, allowing them to move into a formal discussion phase. The measures focus on accelerating 'disinflation' and expanding token 'burns' sourced from network resource fees.

If implemented, proponents expect the changes would reduce SOL issuance over the next six years and bring forward the timeline for reaching the network’s terminal inflation rate. Supporters argue that a lower effective supply trajectory could ease long-term sell pressure and improve the token’s appeal to long-horizon holders, though the final impact would depend on participation dynamics and how fee markets evolve.

On the performance front, Solana also took a step toward faster block production. Hoka News reported that the network activated a testnet upgrade reducing slot time to 350 milliseconds from 400 milliseconds—an early milestone in a roadmap that targets 200 milliseconds. While the change has not yet reached mainnet, it signals continued emphasis on throughput and latency as Solana competes for user and developer activity.

Those technical upgrades arrive alongside record usage data. According to Hoka News, Solana’s weekly transaction count topped 1 billion, reaching an all-time high of 1,012,226,009. Elevated on-chain activity typically reflects expanding engagement across DeFi, NFTs, and gaming applications, and may highlight a gap between short-term price weakness and underlying network usage.

In market commentary, Brave New Coin described SOL as sitting in a potential breakout zone if it can hold support and reclaim key levels, with a path toward retesting $100 contingent on clearing resistance at $75.50 and then $92.60. In the near term, however, traders are watching $70.75 closely; a breakdown there could accelerate downside pressure, while a recovery above $75 accompanied by stronger volume could revive bullish momentum.

For now, Solana is sending mixed signals: price remains under pressure and ecosystem retention questions have resurfaced, yet governance-driven tokenomics changes, ongoing performance work, and surging on-chain activity point to strengthening fundamentals. The next catalyst may come from whether the SGP proposals gain sufficient support, when testnet improvements reach mainnet, and whether SOL can decisively move through its overhead resistance band.