Solana's token SOL experienced a 22.5% decline between January 6 and January 13, touching the $169 mark for the first time in ten weeks. A subsequent recovery of 15% by January 15 failed to lift SOL above $200, raising concerns among traders regarding decreased decentralized application (DApp) activity. According to DefiLlama data, Solana's on-chain volume dropped 10.3% during this period. Despite significant losses from platforms like Raydium and Orca, some projects like Lifinity showed gains in activity. In contrast, Ethereum saw a 9% increase in on-chain volumes. Evaluating DApp networks based solely on activity can be misleading, so total value locked (TVL) is a more accurate metric. While Solana's TVL fell by 5.9% in a month, this decline reflects sector-wide challenges rather than specific failures. Investors remain optimistic about a potential Solana spot ETF approval, which could boost SOL's prospects. As long as it maintains its edge over competitors, the potential for SOL to surge above $230 remains feasible.

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