Solana's On-Chain Strength Gains Momentum Amid Price Weakness

Solana's price has been bearish for 10 consecutive months, but the network's on-chain activity is telling a different story. The $60 region has become an increasingly critical long-term support level for SOL, as it hasn't managed a single strong monthly close since the October breakdown.

However, despite the price weakness, Solana has made significant upgrades to its network. On July 29th, the SIMD-0286 upgrade was activated, raising the compute limit from 60 to 100 million and easing fee pressure by 30%. The 90th percentile transaction fee fell from 29,800 to 20,800 lamports, indicating better throughput and improved capital efficiency.

Notably, Solana processed 8.7 billion transactions in July, its highest monthly transaction count in four months. This on-chain strength is starting to align with a bullish technical setup, as SOL is forming the same breakout-and-retest structure that has historically preceded its strongest rallies.