Solana (SOL) has achieved record on-chain activity, with all-time highs in transactions and Total Value Locked (TVL), yet major holders are selling off, indicating rising sell pressure.
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Solana’s on-chain metrics are at an all-time high, showcasing robust network performance.
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Despite strong usage, major holders are unstaking SOL, leading to increased sell pressure.
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Solana’s price is down 30% YTD, facing competition from Hyperliquid DEX and delays in its tech roadmap.
Solana (SOL) sees record on-chain activity but faces significant sell pressure from major holders, impacting its price performance. Read more for insights.
Solana Surges On-Chain, But Whales Are Quietly Selling SOL
According to SolanaFloor, in July, the network hit a new all-time high in monthly non-voted transactions. True transactions per second (TPS) averaged 1,318, the highest ever recorded.
🚨BREAKING: Monthly non-voted transactions on Solana hit a new all-time high in July. True TPS also averaged 1,318, the highest ever recorded.
— SolanaFloor (@SolanaFloor) August 5, 2025
At the same time, DeFiLlama data shows that Solana’s TVL (Total Value Locked) in native SOL terms is now the highest it’s been in over three years. This points to growing stickiness among users and DeFi protocols.
Solana TVL in native SOL terms. Source: DefiLlama
Notwithstanding, behind the scenes, large holders or whales are unstaking millions in SOL and sending them to the Binance exchange.
Lookonchain flagged that Galaxy Digital unstaked 250,000 SOL, worth $40.7 million, and transferred it to Binance on Wednesday, August 6.
Galaxy Digital unstaked 250K SOL ($40.7M) and deposited it into Binance 3 hours ago.
— Lookonchain (@lookonchain) August 6, 2025
Another whale, tracked by Onchain Lens, unstaked $4.9 million worth of SOL after two months of inactivity.
After four years of staking, that same address has quietly moved over $30 million in SOL to Binance in recent months. The whale still holds a massive $179 million in staked SOL, but the sell pressure is mounting.
The whale has unstaked 30,010 SOL worth $4.9M and deposited 30,050 SOL to Binance, after 2 months of inactivity. In the past 4 months, the whale has unstaked 205,072 SOL, worth $30.07M, after 4 years of staking.
— Onchain Lens (@OnchainLens) August 6, 2025
So, What Gives? Whales Rotate Out as Hyperliquid Steals Solana’s Spotlight
Despite the impressive activity on-chain, SOL’s price action has underwhelmed. Year-to-date (YTD), the Solana price is down nearly 30%, while BTC is up 26%, ETH 15%, and XRP 48%.
SOL/USDT, BTC/USDT, ETH/USDT, and XRP/USDT Price Performances. Source: TradingView
The biggest drag on Solana’s narrative has been Hyperliquid DEX. After a significant period as the undisputed hub for on-chain trading, Solana has lost ground to Hyperliquid’s perpetuals product, especially among power users.
“Hyperliquid was able to capture much of Solana’s momentum… because it offers a simple, highly functional product,” said Matthew Sigel, head of digital assets research at VanEck.
Meanwhile, Solana’s tech roadmap hit turbulence. Firedancer, the high-performance client meant to transform throughput and reliability, failed to deliver on deadlines.
Its internal drama, developer departures, and public disputes have dented confidence. According to Sigel, that uncertainty could be why whales rotate out, even as on-chain data flash bullish.
Still, not every big wallet is exiting. Analyst Ted highlighted a massive $12 million SOL buy on Binance that was restaked to Kamino Finance, suggesting some whales are buying the dip.
Meanwhile, Solana still boasts unmatched speed, and the ecosystem has matured beyond meme coins. However, institutions and serious capital need stability and trust, two things Solana’s engineering roadmap has not fully secured.
“Solana should focus on messaging not only around its capabilities, but also its long-term stability,” Sigel said.
Solana (SOL) Price Performance. Source: COINOTAG
As of this writing, Solana was trading for $164.31, down by over 2% in the last 24 hours.
Frequently Asked Questions
What are the latest metrics for Solana’s on-chain activity?
Solana has achieved record levels of on-chain activity, with an all-time high of 1,318 transactions per second and significant growth in Total Value Locked (TVL).
Why is Solana’s price lagging behind other cryptocurrencies?
Solana’s price is down 30% YTD due to increased competition and delays in its technological advancements, which have led to major holders selling off their assets.
Key Takeaways
- Record On-Chain Activity: Solana has reached new heights in transactions and TVL.
- Whale Sell Pressure: Major holders are unstaking SOL, indicating potential market concerns.
- Competitive Landscape: Solana faces challenges from emerging platforms like Hyperliquid DEX.
Conclusion
In summary, while Solana showcases impressive on-chain metrics, the significant sell-off by major holders raises questions about its future stability and price performance. As the crypto landscape evolves, Solana must address these challenges to regain investor confidence.
