Solana Market Analysis: $2.8B revenue milestone drives bullish case despite recent pullback

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Solana (SOL) fell to $221 at press time, down 3.9% in the past 24 hours after failing to hold above $230. This comes after the stock retraced quickly from this week’s high of $238 and fell below the 100 hourly moving average near $225.

Recently, traders have targeted $218-212 as the first support zone (with deeper buying around $210-215), with a rebound at the $230-235 ceiling, with a heavier supply area at $245-250 above.

If bulls move back towards $230 on strong volume, momentum could retarget $245; if the daily close falls below $212, a drop towards $200 is possible. Despite the decline, SOL continues to set higher lows in a multi-week trend, keeping the broader uptrend in place.

SOL's price trends sideways on the daily chart. Source: SOLUSD on Tradingview

$2.8B Solana Annual Revenue Supports Fundamental Strength

Beyond price, Solana’s fundamentals are flashing green. A new analyst report shows that annualized on-chain revenue over the past year was $2.85 billion, averaging $240 million per month, peaking at $616 million during the memecoin craze in January.

Trading platforms are the flywheel, contributing 30% ($1.12B), with apps like Photon and Axiom sometimes generating $260M in revenue in a month. Thanks to sub-$0.01 fees and high throughput, Solana’s revenue run rate has exceeded Ethereum’s early cycle trajectory and is consistent with 1.2-1.5 million daily active addresses.

DeFi metrics support the story; $13B in TVL, 6x year-over-year growth in stablecoin trading volume, and over $500M in tokenized RWA activity signal persistent, non-speculative use. Upcoming performance upgrades, such as Firedancer, are designed to significantly improve latency and throughput, thereby strengthening the network’s moat against high-frequency DeFi.

Institutional Access, SOL ETF and Q4 Setup

Institutional participation is also expanding on multiple fronts. Public balance sheets reportedly hold $4 billion in SOL, while pledge-backed trust products and pending U.S. spot SOL ETF applications (from issuers such as Fidelity, VanEck, Grayscale, Franklin Templeton, 21Shares and Bitwise) could unlock the next phase of demand.

Several applications face October deadlines, and prediction markets have a strong chance of approval before the end of the year. In the short term, prices are likely to continue to be volatile as cryptocurrency leverage resets, but Solana’s revenue scale, user growth, and upgrade pipeline provide a solid backdrop.

For traders, the roadmap is simple: hold $218-212 to maintain the bullish structure; flip $230 and then $245 to regain momentum. For long-term investors, multi-billion dollar revenue milestones and a rising institutional trajectory will keep the argument above $300 alive once risk appetite returns.

Cover image from ChatGPT, SOLUSD chart from Tradingview

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