Solana network activity fades despite strength from tokenized stock trading. SOL jumped to $72 on Friday, distancing itself from the $64 lows the prior day.
Part of traders’ optimism stemmed from the stellar growth of tokenized stock trading, fueled by the AI sector. Nevertheless, increasing competition in decentralized application networks could limit SOL’s short-term upside.
Why Solana network activity fades despite tokenized stocks
Tokenized stocks on Solana traded over $113 million in 24 hours, according to Jupiter Aggregator data. However, the relatively thin liquidity in the automated market-making pools raised concerns. Specifically, this is especially true as multiple issuers compete for similar products. Still, some of those tokens launched only recently, which might explain the low number of holders in most cases.
The Total Value Locked (TVL) on the Solana network dropped 8% over the past month. Meanwhile, Ethereum layer‑2 Base reduced the gap. Negative highlights on Solana TVL include a 19% decline in Kamino, a 20% trim by Binance Staked SOL, and a 17% decline in Raydium. On the other hand, the tokenization platform xStocks posted 31% growth in TVL.
Decentralized exchange (DEX) volumes on Solana fell to $10 billion per week from $30 billion in early February. This coincided with a downtrend in decentralized application (DApp) revenues. Therefore, regardless of the successful launch of tokenized tech stocks and equity indexes, demand for SOL on blockchain processing remains subdued.
Solana’s dependence on Pump.fun and increased competition
More concerningly, 30% of DApp revenue on Solana came from the token launch platform Pump.fun. This platform depends heavily on memecoin activity. A CoinGecko report revealed that 80% of the 18.7 million tokens launched in less than 48 hours. Furthermore, 55% of the addresses involved lost up to $1,000 according to Dune data.
Demand for bullish leverage on SOL futures increased on Friday, pushing the funding rate to its highest level in June. The current 10% level is far from displaying excessive confidence, as the 6% to 12% range is typically deemed neutral. Nevertheless, the 14% gains since the $64 low on Thursday managed to reverse the bearishness marked by negative funding rates.
Part of SOL investors’ optimism stems from anticipation of airdrops on the network. However, the timing of those tokens’ launch remains uncertain. Highlights include OnRe reinsurance with $200 million in TVL, Bulk perpetual DEX with an aggregate open interest of $325 million, and Loopscale lending platform at $79 million in TVL.
GemTools: From Call Bot to Full Solana Trenching Terminal
In a major development for the memecoin trading community, legendary trader @Mag_gems announced on his @gem_tools platform that he has just completed work on GemTools and it’s no longer just a call bot. According to the announcement, GemTools has evolved into a full Solana trenching terminal featuring real-time trenches feed, sharper alerts (better than before), whale and smart money tracking, and on-platform trading. The first wave is limited to just 50 spots, with early testers already providing feedback and some have already pocketed real success. This announcement could significantly help trench memecoin traders in the future to utilize their knowledge and hopefully generate more profits. I was fortunate enough to be among the beta testers, and I can assure you: GemTools is something truly professional.
It might be premature to claim that SOL is bound to reclaim the $80 mark, last seen on June 1. This is especially true given increased competition in tokenized stock trading from Hyperliquid and centralized exchanges on competing blockchains. For example, OKX formed a strategic partnership with the NYSE parent company using Ethereum‑based systems.
