SOL Traders Lose Reasons to Hold as Solana Activity Slumps
By CoinDesk Crypto Desk – February 19 2026
Key Takeaways
- Price pressure – SOL is hovering just above the $80 level, while futures open‑interest has collapsed by roughly three‑quarters, indicating a sharp retreat of leveraged demand.
- Derivatives sentiment – Short positions on SOL are paying an annualized funding rate of about 20 %, a stark contrast to Ethereum’s modest 1 % rate, underscoring strong bearish conviction.
- Revenue shift – Weekly on‑chain dApp revenue on Solana fell to $22.8 million, the lowest since October 2024, with memecoin launchpad Pump alone accounting for 40 % of that total.
- Institutional lag – SOL‑focused exchange‑traded products hold $2.1 billion in assets, lagging far behind Ethereum’s $15.8 billion, suggesting limited institutional appetite.
A Stalled Price Rally
Solana’s native token, SOL, has been unable to climb back above the $89 threshold for the better part of the past two weeks. After a decisive rejection at $145 in mid‑January and a sharp dip to $67.60 during the February 6 market sell‑off, the token now finds support near $78‑$80. The lack of upward momentum has been mirrored on the derivatives market, where the total value of open interest on SOL futures has fallen from a peak of $13.5 billion to roughly $3.4 billion – a 75 % contraction in just five months.
Funding Rates Reveal a Bearish Bias
The funding mechanism that balances long and short positions on perpetual futures provides a useful sentiment gauge. Currently, traders betting against SOL are paying an annualized rate of around 20 % to keep short contracts open. Such a high negative funding rate, persisting for more than a week, signals deep conviction among bearish participants. By comparison, Ethereum’s funding rate sits near 1 %, well below the neutral 6 % benchmark but nowhere near SOL’s extreme level.
SOL Underperforms the Broader Market
Over the last 30 days SOL’s price has lagged the overall crypto market by roughly 11 %. Although the asset remains among the top seven by market capitalization, it has shed 67 % of its value since the September 2025 high of $253, a decline that is now reflected in on‑chain activity and derivative metrics alike.
DApp Revenue Slides, Memecoins Dominate
Weekly revenue generated by decentralized applications on the Solana network dropped to $22.8 million, the lowest figure recorded since October 2024. The decline is not uniform across sectors; the memecoin launchpad Pump alone contributed $9.1 million, or about 40 % of total weekly earnings. In contrast, Ethereum’s dApp ecosystem produced $16 million in the same period — a modest 2 % month‑over‑month increase — driven largely by established DeFi protocols such as Aave, Flashbots and Sky.
The data highlights Solana’s growing reliance on retail‑driven, speculative projects, whereas Ethereum continues to capture high‑value DeFi use cases and larger total value locked (TVL) metrics.
Institutional Interest Remains Tepid
The weakness in derivative enthusiasm is mirrored in the performance of Solana‑linked exchange‑traded products (ETPs). Assets under management across SOL ETFs from providers like Bitwise, Fidelity, Grayscale and 21Shares total $2.1 billion, trailing Ethereum’s $15.8 billion by a wide margin. The modest inflows suggest that traditional fund managers are skeptical about the near‑term upside for Solana’s ecosystem, especially given the current emphasis on memecoins and launchpad activity.
Outlook: What Could Spark a Recovery?
Analysts point to emerging sectors such as artificial‑intelligence infrastructure and prediction‑market platforms as potential catalysts for renewed interest in SOL. Both areas promise higher utility and could help diversify Solana’s revenue streams beyond retail speculation. However, competition for these niches is intense, and any substantive progress will need to overcome the current perception of a “death spiral” where falling prices erode incentives for developers and holders alike.
If SOL’s derivatives market continues to shrink and on‑chain metrics stay weak, the $78 support level could become vulnerable, opening the door to further price erosion.
Disclaimer: This article does not constitute investment advice. All trading and investment decisions involve risk. Readers should perform their own due diligence before acting on any information contained herein.
Source: https://cointelegraph.com/news/solana-futures-data-shows-panicked-bulls-will-80-sol-hold?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
