Solana's native token, SOL, rose 7% on January 22, although it struggled to maintain the $260 support level. So far in 2025, SOL has gained 34%, outperforming the broader altcoin market, which grew 10%. This rally has been largely driven by memecoin trading hype. However, despite the upward movement, SOL faces challenges in surpassing the $280 mark due to declining on-chain and derivatives metrics. Network fees dropped significantly and daily active addresses fell from 16.5 million to 13 million shortly after peaking. While Solana continues dominating decentralized exchanges with $11.9 billion in volume, the overall decline in on-chain activity indicates traders may be shifting focus to the stock market amidst optimism surrounding the new Trump's presidency. Looking ahead, unless a catalyst such as US approval of a spot ETF emerges, SOL may have limited chances of revisiting its all-time high of $295 soon.

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