Despite Solana’s (SOL) price declining 31% in 2026, its on-chain fundamentals appear robust. The network’s DeFi Total Value Locked (TVL) has reached a new all-time high of $80 million, driven by strong stablecoin inflows and growth in areas like Real-World Assets (RWAs). However, intense speculative activity from memecoins, which have outperformed SOL recently, may be masking the network’s underlying strength and complicating the argument that the token is undervalued.
The price of Solana [SOL] has diverged from its network fundamentals, which is often seen as a potential bullish signal. Strong on-chain metrics and sustained capital inflows suggest investors are betting on the network’s long-term potential.
SOL has pulled back 31% so far in 2026, putting it among the weaker performers this year. Conversely, network activity remains robust with capital flowing into growth areas like RWAs and hitting new all-time highs.
Building on this momentum, Solana‘s DeFi TVL recently hit a new all-time high of $80 million, fueled by strong stablecoin inflows. High liquidity and a growing TVL show that capital is being locked, signaling confidence in the network.
Speculative memecoin activity is currently testing SOL’s market momentum. Over the past 30 days, the memecoin sector’s market cap fell by 3.5% to $30.2 billion, while SOL dropped by 8.5% in the same period.
On-chain data shows Solana meme launchpads processed nearly $100 million in daily volume, with new token launches averaging 30,000 per day this week. Put simply, the data highlighted the ongoing speculative frenzy on the network.
Further backing this trend, Pippin [PIPPIN] surged over 100% in a single week, surpassing a $535 million market cap. High memecoin activity can be bearish for SOL, as these tokens are often traded for short-term gains.
This divergence between on-chain strength and price action might not reflect a classic bullish setup. Instead, speculation may be masking the network’s fundamental progress, making a climb back to higher price levels more challenging.
