Solana’s on-chain strength vs. a bearish SOL: What does the future hold?

• Solana’s lower lows and weakening bounces reveal a structurally bearish price trend.
• Is SOL’s on-chain strength hinting at an undervalued setup?

Solana [SOL] closed June down just 1.2% from its $156 monthly open. However, beneath that modest decline lies a structurally weak price action. 

Nearly 20% of June’s recovery came in the final week, as SOL rebounded off $126, marking its fourth consecutive lower low since the May peak at $184.

In fact, each bounce shows weaker momentum and fails to reclaim key resistance zones.

This sequence of lower highs and lower lows underscores a bearish market structure, making SOL one of the weakest performers among majors, despite the seemingly minor monthly loss.

Source: TradingView (SOL/USDT)

Ordinarily, such price action would suggest deteriorating network fundamentals. But Solana’s on-chain data paints a different picture. In fact, in June alone, Solana saw a sharp rebound in core performance metrics. 

So the question now becomes: Is this disconnect between price and fundamentals a sign of hidden strength? Or is the market still underestimating Solana’s next leg up?

Solana closes June soft but signals hidden strength

Despite a sharp 60% drawdown from its $53 peak, mirroring Solana’s own correction from $184 in May, DeFi Dev Corp. [DFDV] isn’t backing off its bullish SOL thesis.

Instead, the firm has announced a $100 million convertible note offering, explicitly aimed at expanding its Solana holdings.

This move underscores a clear shift in institutional strategy: Allocating based on network fundamentals, not price action. And in Solana’s case, the data backs it. 

In June alone, the network processed over 3 billion transactions,  processing an average of 1,157 transactions per second (TPS) – 2.4x more than all other chains combined.

Source: Artemis

In fact, that momentum is spilling over into liquidity flows too: Over $460 million in assets were bridged into Solana in June alone, marking a 70% jump from the previous month.

This divergence between price action and on-chain activity is clearly becoming increasingly attractive to institutional players. But for the broader market? It is only now starting to reprice Solana’s true value.