Solana (SOL) Down 72% From All-Time High as Mutuum Finance (MUTM) Advances Toward Mainnet

Solana (SOL) remains 72% below its all-time high of $295, trading near $79, even as several network metrics continue to show resilience. While SOL faces sustained price pressure, development activity across decentralized finance persists, including progress from Mutuum Finance (MUTM) as it moves toward its planned mainnet launch.

Solana Network Activity Holds Despite Price Drop

SOL is well below the $188 level recorded during its spot ETF launch in October 2025 and has retraced steadily over the past four months. Spot SOL ETFs initially attracted over $100 million in average net inflows during their first five weeks. Since December 2025, weekly inflows have moderated to approximately $20–$25 million as the token’s price declined toward the $80 range.

Despite the drawdown, cumulative ETF outflows have totaled only about $11.3 million over two weeks. In comparison, spot Bitcoin and Ether ETFs recorded four consecutive months of negative flows during the same period, suggesting relatively stable positioning in SOL-linked products.

On-chain activity continues to outpace several competitors. Over the past 30 days, Solana processed approximately $108 billion in decentralized exchange (DEX) volume, compared to Ethereum’s $63.7 billion and Base’s $31.48 billion. January DEX volumes reached $117 billion, exceeding prior months. Weekly averages since early 2025 have remained near $20–$25 billion.

In the last 24 hours, Solana generated $3.1 million in application revenue, slightly ahead of Ethereum’s $2.95 million. Active addresses stood at 2.17 million, compared to Ethereum’s 682,236, while daily chain fees reached $722,706 versus Ethereum’s $356,438. Additionally, Solana’s real-world asset (RWA) sector has climbed to $1.71 billion, up 45% over 30 days, though Ethereum continues to dominate the segment with approximately $15 billion in distributed asset value.

From a technical perspective, SOL has tested a demand zone between $51 and $80 and remains capped below weekly resistance near $120. Analysts note that valuation metrics show price compression relative to sustained network usage and stable ETF positioning, creating a measurable gap between activity levels and market valuation.

With more than 19,000 holders participating in its ongoing token sale, Mutuum Finance has raised over $20.6 million. Over 850 million MUTM tokens have been sold, with the token currently priced at $0.04.

Mutuum Finance (MUTM)

Before its full mainnet release, the team launched its beta lending and borrowing protocol on the Sepolia testnet. In its current version, the protocol includes several core features:

• Liquidity Pools: shared pools where users supply assets to provide liquidity for borrowers and earn interest
• mtTokens: minted upon supply, representing deposit positions and accumulating yield over time
• Stability Factor: risk metric measuring how well-collateralized a borrowing position is
• Automated Liquidator Bot: monitors positions and triggers liquidation if collateral falls below required thresholds
• Debt Tokens: minted upon borrowing and tracking principal plus accrued interest
• Safe-Mode Borrow Presets: predefined risk options (Safe, Balanced, Aggressive) that automatically adjust borrowing limits based on target Stability Factor levels
• Supported assets: ETH, WBTC, USDT, and LINK.

In the current testnet environment, users are lending, borrowing, and staking crypto assets through the protocol.

Users who lend assets through the protocol receive passive income based on APY (Annual Percentage Yield). APY determines the return lenders earn and varies depending on pool utilization. For example, if a user deposits $10,000 USDT into a lending pool, they receive mtUSDT as proof of deposit. If the average APY is around 5–6% annually, the user could earn approximately $500–$600 in passive income over one year. Deposited assets can be withdrawn at any time, subject to available liquidity in the pool.

If the user chooses to stake mtTokens, such as mtUSDT, they become eligible to receive dividends in MUTM tokens. A portion of the fees collected from protocol activity is used to purchase MUTM tokens from the open market, creating additional buy-side activity for the token.

Users who borrow through the protocol must deposit collateral, and the borrowing capacity is determined by LTV (Loan-to-Value). LTV defines how much a user can borrow against the value of their deposited assets. This structure is beneficial for holders who expect long-term price appreciation and prefer not to sell their tokens. For example, if a user deposits $1,000 worth of ETH as collateral and the maximum LTV is 75%, they can borrow up to $750 in USDT. If the value of ETH later increases to $1,200, the user can repay the borrowed amount and reclaim their collateral, which has gained in value during that period.

Recently, a new feature was added to the current version of the protocol: Safe-mode borrow presets. Users can now select from three preset options — Safe, Balanced, and Aggressive. The Safe preset maintains a higher Stability Factor by setting a lower borrowing level relative to collateral, reducing liquidation risk. The Balanced option allows moderate capital efficiency with controlled risk exposure. The Aggressive preset enables borrowing closer to the maximum LTV, increasing capital utilization but also increasing exposure to volatility.

User activity within the testnet environment continues to expand, with simulated liquidity surpassing $150 million in total value locked (TVL), reflecting active participation across lending and borrowing functions during the testing phase.

The lending and borrowing smart contracts have undergone a security audit by Halborn. With the audit completed, the protocol expanding, and additional updates underway, Mutuum Finance continues progressing toward its planned mainnet launch.