Solana, a rapidly evolving blockchain, has gone through a significant shift in sentiment. After a considerable rise in July, the situation in August appears less optimistic, particularly in the DeFi sector.
July Euphoria: Solana's Rally
In July, the price of SOL surged more than 40%, reaching new heights above $200 due to enthusiasm from investors and developers. This event was dubbed "Solana Summer" and became one of the key stories of 2025. However, shortly after this spike, the price fell to $180 due to declining user activity and a drop in total value locked.
DeFi Activity: A Short-term Lull
DeFi activity on Solana has always been closely linked to its rapid growth. Nevertheless, in recent weeks, there has been a decrease in total value locked and deposit volumes, which may be linked to market participants moving funds into more stable blockchains out of fatigue from uncertainty.
Technical Support and Insights Ahead
Currently, SOL is trading above a key support level of $178. If the price holds firm here, a rebound may be in store. Meanwhile, future network upgrades are expected to improve performance and stability. Sustained institutional demand could also serve as a positive signal for the exchange.
Against the backdrop of declining activity and shifting market sentiments, Solana faces a significant testing period. The outcome of August will determine whether the blockchain can rebound or continue consolidating.
