Solana Treasury Crisis Deepens: New Lows Threaten SOL’s Price Stability – Can It Recover?
Solana's treasury reserves hit rock bottom—again. The once high-flying blockchain now faces its steepest decline yet, with SOL's price teetering on the edge.
What's driving the sell-off? Institutional whales are dumping holdings, retail traders are panic-selling, and the usual 'buy the dip' crowd has gone suspiciously quiet. Meanwhile, Solana's DeFi ecosystem—once its crown jewel—is bleeding TVL faster than a hacked smart contract.
Market analysts whisper about 'structural weaknesses' while Twitter degens scream 'scam.' Truth is, Solana's tech still outperforms most Layer 1s—but when treasury reserves evaporate, even the best protocols starve.
Here's the kicker: VCs who hyped SOL to retail at $200 are now quietly shorting it. Classic crypto. Will the network innovate its way out—or join the graveyard of 'Ethereum killers'? One thing's certain: the next few weeks will separate the diamond hands from the exit scammers.
Corporate Solana Reserves Continue To Bleed
Solana is experiencing a notable development that is capable of shaping its next market direction. Ted Pillows, a market expert and investor, shared on the X platform that the corporate treasuries of solana are sinking further as the price of SOL struggles to regain upward traction.
According to the expert, SOL treasury companies are making new lows that echo through the on-chain corridors of the network. This implied that the wallets previously renowned for their steady accumulation are now showing diminishing conviction as balances discreetly shrink in the current bearish market phase.
The trend shows how institutional Solana holders are adjusting in the face of tightened liquidity and increased volatility, but it’s not a sudden exodus. Rather, it may be a steady, calculated exhalation.
Pillows highlighted that this drop to new lows is a major reason why the price of SOL has been performing badly, as buying demand has faded among institutional investors. Until these companies recover, the expert is confident that a recovery in SOL will be difficult.
However, Solana has started throwing up a quiet flare, one that heralds a recovery. After examining the altcoin’s price action on the weekly time frame, Ali Martinez, a crypto analyst and trader, revealed that SOL is flashing a bullish signal that points to a potential upward move.
Martinez’s analysis hinges on the key Tom DeMark (TD) Sequential indicator. Since March 2023, the TD Sequential has proven to be very accurate when it comes to identifying SOL trend shifts on the weekly chart. During the ongoing bearish wave, the indicator is flashing a buy signal, suggesting that Solana is likely gearing up for a bounce.
SOL Activity Is On The Rise
Despite Solan’s price facing volatility, the leading network continues to wax strong as activity grows. In a post on X, Solana Daily disclosed that the network’s x402 activity is accelerating at a pace that feels more like an explosion this week. Currently, transactions are broadening, participation is expanding, and on-chain discussion is rising in the community.
The platform highlighted that the daily transaction volume on the protocol reached a new all-time high with approximately $380,000 processed on November 30 alone. This MOVE to a new peak represents a 750% Week-over-Week (WoW) surge.
Furthermore, Solana has flipped the chart in dollar volume for the first time since its inception. With x402 transactions reaching new highs and a flip in dollar volume, the network is emerging as the most active in the cohort.
