Solana's blockchain network experienced a significant surge in on-chain activity and token creation in January 2026, even as its native token, SOL, faced a steep price decline. The network processed a record $117.7 billion in decentralized exchange (DEX) volume, capturing nearly 35% of the total on-chain DEX market and marking a 20% increase from December 2025. This dominance placed it far ahead of competitors like Ethereum, BNB Chain, Base, and Arbitrum.
Concurrently, token creation on Solana reached a 12-month peak, with over 1.3 million new tokens launched in January. This expansion was largely fueled by a new wave of meme coin activity, with peak days seeing more than 63,000 new tokens created. This frenzy boosted DEX trading and fee generation for launchpads, with the Pump.fun platform concluding a strong month by generating $107.5 million in fees, its highest level since September 2025.
Despite the robust network metrics, SOL's price performance diverged sharply. The token fell roughly 25% over the past week, dropping from the $120–125 range to trade around $93.7, and briefly broke below $95 for the first time since February 2024. The Relative Strength Index (RSI) indicated intense short-term selling pressure.
Analysts note the activity is primarily driven by retail, or small-scale, traders. Over 135,000 small-scale wallets hold Solana meme coins, compared to only around 35,000 medium-sized wallets and a mere 2,066 whale-sized wallets. The overall valuation of Solana memes has declined to $4.7 billion, supported by legacy tokens like TRUMP, BONK, and PENGU, while most new launches rarely surpass a $30 million valuation.
Institutional outlook remains mixed. Standard Chartered adjusted its short-term price forecast for SOL downward from $310 to $250. However, the bank's Global Head of Digital Assets Research, Geoff Kendrick, maintains a bullish long-term view, projecting SOL to reach $400 by end-2027, $700 by end-2028, and $1,200 by end-2029. He highlighted Solana's efficiency in stablecoin payments, where activity is increasingly concentrated in SOL-stablecoin pairs, as a potential driver for new use cases like AI-driven micropayments.
