SOL reclaims $72, but onchain data flags weakening momentum

Solana (SOL) reclaimed the $72 price level on March 18, 2024, driven in part by increased activity in tokenized stock trading on its network. This surge in tokenized stock trading, which saw a 15% increase in the past week according to data from The Block Research, contributed to a rise in Solana's total value locked (TVL). However, on-chain data indicates that this upward momentum may be weakening. The total value locked (TVL) on the Solana network has declined by 10% over the past month, falling from $3.7 billion to $3.3 billion. Similarly, decentralized exchange (DEX) volumes on Solana have also seen a decrease, dropping by 20% in the last seven days. This reduction in DEX activity suggests a potential slowdown in overall network usage and speculative trading, which could impact SOL's price performance in the short term. Despite the recent price recovery, analysts are closely monitoring these on-chain metrics for signs of sustained growth or further deceleration.