Solana Signals Potential Downside as Mutuum Finance Increases Its Holder Count to Over 19,000

Solana fell more than 7% at the start of the week, dropping to an intraday low near $81 as broader market weakness and declining network metrics pressured sentiment, with technical indicators pointing to potential further downside if support levels fail to hold. Meanwhile, Ethereum-based lending protocol Mutuum Finance continues to expand its community, surpassing 19,000 holders of its MUTM token as development advances on its testnet lending and borrowing platform.

Solana Downtrend Deepens on Weak Signals

Solana fell more than 7% on Monday, dropping from $88.05 to an intraday low of $81.86 on March 2. Although the token later attempted to reclaim the $90 resistance level during a broader market rebound, the move stalled below that threshold. On a monthly basis, SOL is down over 30% and remains more than 44% below its highs for the year.

On-chain data points to slowing network activity. Weekly revenue on the Solana network has declined by more than 30% compared to mid-January levels, according to DeFiLlama. Total value locked (TVL) has also decreased from over $9 billion on Jan. 17 to approximately $6.64 billion at the time of reporting. The simultaneous drop in revenue and TVL has raised concerns among investors about the sustainability of Solana’s earlier growth phase.

Derivatives data reflects reduced trader exposure. CoinGlass figures show SOL futures open interest has fallen nearly 45%, from a January peak of $8.88 billion to $4.93 billion, as participants unwind positions. Technically, Solana has formed a bearish flag pattern on the daily chart following its downtrend that began in mid-January. Indicators including the Supertrend and Aroon lines signal continued selling pressure. If bearish momentum persists, analysts point to the Feb. 6 low near $70 as a potential downside target, while a sustained move above $90 would be needed to improve the short-term outlook and reopen the path toward $100.

Mutuum Finance Increases Its Holder Count to Over 19,000

The native token of Mutuum Finance is the MUTM token, priced at $0.04, with over 19,000 holders and more than $20.7 million raised in total. While Solana signals potential downside in the current market environment, Mutuum Finance continues expanding its lending and borrowing protocol.

At present, the first version of its protocol is live on the Sepolia testnet, featuring active lending and borrowing mechanics along with core components such as mtTokens, stability factor monitoring, debt tokens, and an automated liquidator bot.

Recently, the team announced on X the integration of a new feature within its beta application — Safe Mode Borrow Presets. Users can now select a risk preset in one click, choosing between Safe, Balanced, and Aggressive.

To borrow crypto assets, users must deposit collateral. A common question is why borrowing requires collateral. Borrowing with collateral enables users to access liquidity without selling their underlying assets. For example, if a user deposits 2 ETH as collateral and borrows against it, and the price of ETH increases during the loan period, the collateral’s value may rise to the equivalent of 2.3 ETH in value terms. Upon repaying the borrowed amount, the user retrieves the collateral, potentially benefiting from the appreciation.

Regarding LTV, for cryptocurrencies such as Ethereum, the loan-to-value ratio can be around 80%, meaning users may borrow up to 80% of their deposited collateral. Under the Safe preset, borrowing is set below the maximum LTV to reduce liquidation risk. The Balanced preset allows moderate borrowing relative to collateral, offering a balance between risk and capital efficiency. The Aggressive preset enables borrowing closer to the maximum LTV, increasing capital utilization but also raising exposure to liquidation risk.

Users can also test how lending functions and how passive income is generated. By lending USDT, for example, users receive mtUSDT, which represents accumulated yield over time. If the average APY ranges between 7–8% annually, a $20,000 deposit could generate approximately $1,400–$1,600 in passive income over one year, depending on pool utilization. Additionally, staking mtTokens provides dividends in MUTM tokens. These tokens are purchased from the open market and distributed to stakers, further linking protocol activity with the MUTM token’s market dynamics.

All these features can currently be tested on the Sepolia testnet using Sepolia test tokens, allowing users to explore the lending, borrowing, and staking mechanics in a live beta environment. This setup provides participants with a practical understanding of how the protocol operates while enabling the team to gather feedback from users through its social channels and continue enhancing the protocol ahead of mainnet deployment.

Solana’s current price structure reflects weakening technical and on-chain momentum, with key support and resistance levels likely to determine its near-term direction. Mutuum Finance continues to expand its holder base and develop its lending infrastructure on testnet, signaling ongoing activity within decentralized finance.