Solana's cryptocurrency, SOL, has experienced a significant decline, currently sitting 72% lower than its peak value of $295. Despite this downturn, a closer look at several data points suggests a promising investment opportunity. The question remains: is SOL currently undervalued?
Since the launch of Solana's spot exchange-traded funds (ETFs) in October 2025, which initially saw SOL priced at $188, the token has witnessed a sharp decrease in value, reaching $86 by February 2026. Initial spot SOL ETFs attracted over $100 million in net inflows during the first five weeks, but these have since slowed to an average of $20-$25 million weekly as the price fell. Despite this, outflows over the past four months have been relatively modest, totaling $11.3 million, especially when compared to the consistent negative flows in Bitcoin and Ether ETFs during the same period.
In contrast to its price performance, Solana's network activity tells a different story. Over the last 30 days, Solana has processed $108 billion in decentralized exchange (DEX) volume, surpassing Ethereum's $63.7 billion and Base's $31.48 billion. This trend has continued since January, with weekly averages ranging between $20 billion and $25 billion. In the past day alone, Solana's app revenue reached $3.1 million, exceeding Ethereum's $2.95 million. Additionally, Solana maintains a higher number of active addresses and chain fees compared to its competitors.
Solana's real-world asset (RWA) sector has also seen growth, reaching an all-time high of $1.71 billion, marking a 45% increase over the past month. However, Ethereum's dominance in this sector remains strong, holding $15 billion of the $25.37 billion distributed asset value.
Crypto trader Scient has identified key zones that may indicate a potential bottom for SOL. The 0.75 Fibonacci retracement level, between $60 and $70, aligns with deeper market pullbacks, while a fair value gap between $22 and $29 represents a previous liquidity imbalance. Currently, SOL's price is capped under the $120 resistance level, but it has already tested the demand zone of $51 to $80, suggesting a possible recovery.
The UTXO Realized Price Distribution (URPD) data highlights a dense cost basis zone, with over 6% of SOL's supply having moved within the current price cluster. This indicates strong support between $20 and $30, where more than 3% of the supply is concentrated.
From a valuation perspective, SOL appears near a realized supply cluster, while ETF positions remain stable and DEX turnover leads other blockchain networks despite lower total value locked (TVL). The gap between network activity and SOL's market valuation raises questions about whether this will resolve through price movements, contingent on SOL's interaction with the $51 to $80 and $120 resistance levels in the coming months.