Solana (SOL +3.65%) is down by about 36% during the past 90 days thanks to a mixture of terrible sentiment in the crypto market and bad news about a lawsuit targeting a few of the network's most important entities.
So is this dip a buying opportunity, or has the bull thesis for this coin started to fall apart?
Image source: Getty Images.
This chain is still accelerating
One thing to know right off the bat about Solana's recent slide is that the chain's ecosystem is in great condition.
Its total value locked (TVL), a measure of capital deployed in decentralized finance (DeFi) applications, is near $6.6 billion. Its base of stablecoins, the liquidity that's fuel for DeFi and most other on-chain applications, is nearly $15.6 billion, which is close to its all-time high. In other words, investors are still parking plenty of their capital on the network even as the coin's price falls.
Plus, Solana is now available in exchange-traded funds (ETFs) launched in late 2025, which currently hold about $332 million in capital. Inflows are persisting, and more ETFs are on the way, which could lead to even more money inflows.
CRYPTO: SOL
Key Data Points
At the same time, the network still has by far the fastest transaction speeds, lowest transaction costs, and highest throughput potential among the crypto majors. And more upgrades to its technology are on the way in 2026, which should push its lead in those categories even further. As it pivots toward being a platform for tokenized assets, especially stocks, that will make it a favorite among users who require snappy performance.
The lawsuit is a wild card
One cloud that keeps Solana from being a clear dip-buying opportunity is the fact that it currently faces a serious class-action lawsuit.
That lawsuit names critical entities responsible for its tech development as well as the health of its ecosystem, including Solana Labs, the Solana Foundation, and the operators of Pump.fun, a meme coin launchpad on Solana's chain. The plaintiffs allege that these entities cooperated to give the network's insiders priority access to token launches, thereby creating unfair conditions for outside investors. It's quite unclear how the case will turn out.
If the lawsuit is dismissed, Solana's price could snap back as its fundamentals keep demonstrating good performance and it keeps getting upgraded. And the coin could still recover even if things drag on. But if the outcome is unfavorable, Solana might have to pay a large fine or settlement, which would be a major PR defeat, and also would sap the chain of some of the resources it needs to continue growing and competing.
I think Solana is going to be priced much higher in a few years. At the same time, I can't in good conscience suggest buying it right now given that the lawsuit is in play, even if the coin is now priced at a big discount.
