Fundamental Analysis of Solana (SOL) on July 8, 2025: Market Outlook

Fundamental analysis of Solana on July 8, 2025, exploring market data, DeFi growth, and network upgrades.

As of July 8, 2025, Solana (SOL) is trading at approximately $148.84, down 0.65% in the past 24 hours. This price reflects consolidation below its all-time high of $202.3 from early 2025. A fundamental analysis of Solana reveals several factors shaping its future trajectory. A key driver is the significant growth of Solana’s DeFi ecosystem. The total value locked (TVL) in Solana-based DeFi protocols has surged from $396 million in December 2022 to approximately $8.69 billion by July 2025, a 2,094% increase. This growth reflects capital inflows, increased DeFi participation, and renewed trust in Solana’s infrastructure following past challenges like the FTX collapse. Network upgrades also play a crucial role. Solana has recently implemented updates to improve scalability and reduce transaction latency, enhancing network efficiency. These improvements have made Solana an attractive platform for developers of DeFi and NFT projects. Additionally, the expansion of liquid staking derivatives (e.g., JitoSOL and mSOL) has boosted demand for SOL, as investors seek yield opportunities. Market data shows Solana’s 24-hour trading volume at around $2.3 billion, indicating high trader activity. The RSI on the daily timeframe is neutral, suggesting potential for upward movement without entering overbought territory. Furthermore, a strong demand zone between $146.92 and $140 has acted as a support base where buyers remain active. External factors, such as geopolitical tensions and economic uncertainty, could benefit decentralized assets like Solana as investors seek alternatives. However, macroeconomic factors, such as Federal Reserve interest rate decisions, may introduce short-term volatility. Whale activity is also notable, with reports of large SOL transfers to unknown wallets, potentially indicating investment strategies or preparations for significant market moves. Recent rumors about Solana ETF approvals have fueled market optimism, though some analysts warn of potential unsustainability in this trend. Overall, Solana’s short-term outlook is bullish, but traders should monitor market volatility and external risks. A break above the $165.70 resistance could pave the way for a retest of $183, though a correction toward $140 remains a risk. In summary, a combination of DeFi growth, network upgrades, and market data positions Solana favorably, but caution is warranted due to market volatility.