Solana Price Eyes $200 as TVL and Fee Revenues Surge—ETH Threatens to Outpace

Key Insights: Solana Price eyes rally as SOL TVL now exceeds all Ethereum layer-2 networks combined. DApp fee revenue boosts SOL demand amid rising staking participation. Analysts warn ETH may outperform SOL in the coming months. Solana (SOL) price has rallied nearly 25% in just five days, rising from $147 on May 6 to $183 by May 10. The rally followed Bitcoin’s breakout above $100,000 and helped fuel altcoin market momentum. While SOL has since hovered near the $180 mark, growing on-chain activity and derivatives data hint at more upside ahead. But not everyone remains bullish. Analysts like CryptoBullet warn that Ethereum may soon outperform Solana based on key technical breakdowns in the SOL/ETH pair. Solana’s DeFi Ecosystem Outpaces Ethereum Layer-2s Solana now ranks as the second-largest blockchain by total value locked (TVL), according to DefiLlama. Its ecosystem currently holds $10.9 billion in locked value, surpassing the combined TVL of major Ethereum layer-2 platforms like Arbitrum, Base, and Avalanche. Raydium DEX saw a 78% increase in TVL over 30 days, while Jito’s liquid staking solution rose 41%. Marinade Finance, another staking platform, posted a 56% gain. These developments point to expanding user engagement across SOL’s decentralized finance (DeFi) sector, which in turn hints at a potential Solana price rally ahead. Meanwhile, rising activity hasn’t just translated into locked capital. The chain’s fee revenues also spiked. Solana generated $43.3 million in base layer fees over the past 30 days, trailing only Tron’s $51.9 million and beating Ethereum’s $24.9 million over the same period. Fee Revenue and Staking Dynamics Boost SOL Demand High fees may seem like a negative, but they often reflect strong network usage. In Solana’s case, growing fee generation signals healthy DeFi and decentralized application (DApp) engagement. Data from DefiLlama shows Solana’s DApps revenue and chain fees approaching their three-month highs. This trend adds demand for SOL, the native token, as users need it to pay for transactions and interact with apps. Meanwhile, over 65% of the SOL supply remains staked. That limits available supply on the open market, helping sustain upward price momentum. The combined effect of higher DApp revenue and locked token supply has set a bullish tone for SOL. What Lies Ahead For Solana Price? Despite on-chain gains, the derivatives market shows traders are not yet excessively bullish. Laevitas data puts SOL’s perpetual futures funding rate at 8%, falling within the neutral range of 5%–10%. A positive funding rate indicates traders are leaning long, but the modest percentage suggests restrained optimism. SOL still trades about 40% below its January 2025 high of $295. With no clear breakout catalyst, bulls remain cautious. Still, sentiment could shift fast if narratives like a potential Solana spot ETF approval or integration into state-level digital asset reserves gain traction. Tokenization of traditional assets on Solana is another area that could bring institutional interest. Analyst Warns Ethereum Will ‘Crush’ Solana Price Soon Not all market observers are convinced that SOL will lead the next leg of the altcoin cycle. In a May 10 post, trader CryptoBullet flagged a possible breakdown in the SOL/ETH weekly chart. “People ask me why I think $SOL will underperform for the rest of the year,” CryptoBullet wrote. “Just look at this chart $SOL/ETH 1W... In the next few months, #Ethereum will crush #Solana.” He noted that the pair appears to be breaking down from a rising wedge—a pattern often viewed as bearish. If Ethereum starts outperforming SOL, it could shift capital flows back toward ETH, especially if Ethereum’s ETF narrative continues to gain steam. Solana continues to post strong on-chain fundamentals, from DApp revenue to staking and TVL growth. However, it faces competitive pressure from Ethereum as macro and technical factors converge. SOL’s attempt to reclaim the $200 level may succeed in the short term. However, the broader question remains: Can Solana maintain its momentum if Ethereum reclaims the spotlight? The network’s metrics paint a bullish picture, but traders are watching the SOL/ETH pair closely for what comes next.