Introduction BitMorpho Daily News & Fundamentals: SOL Date: Monday, December 22, 2025 Welcome to your Monday dose of vital crypto intelligence. For Solana ($SOL) holders, the weekend saw fundamentals solidify in spectacular fashion, even as price action hovered near a key decision zone. Today, we dissect the on-chain structural shift while keeping a weather eye on the broader macroeconomic currents that continue to shape capital flow. The most significant fundamental news for Solana today centers on its decentralized dominance: Solana’s on-chain trading volume has surpassed that of both Binance and Bybit combined, signaling a profound structural migration of liquidity from centralized order books to decentralized execution layers. Analysts are viewing this as definitive proof of structural adoption, not mere speculative noise, with decentralized exchange (DEX) volume on Solana reportedly leading all blockchains for sixteen consecutive weeks. This shift is underpinned by robust network activity, with Total Value Locked (TVL) stabilizing around 8.81 billion and DEX volumes hitting 3.9 billion, even as the network navigates liquidity resets. Furthermore, Solana continues to attract institutional confidence, evidenced by ongoing ETF inflows and protocol upgrades that have driven its annual revenue past $2.85 billion. This strong foundational performance comes as SOL trades in a tight band, rejecting recent highs near 126 but showing signs of approaching an institutional accumulation zone around the 117–123 mark. While technical indicators signal potential weakness, the underlying network health suggests any selling pressure is currently viewed by smart money as a chance to accumulate before potential retests of higher resistance levels. On the macro front, attention remains fixed on the Federal Reserve's lingering policy uncertainty. Following the expected December rate cut to a range of 3.5% to 3.75%, market participants are now parsing Fed commentary for 2026 guidance, with expectations for future cuts showing divergence among policymakers. This environment where the Fed signals an end to the aggressive easing cycle while the crypto market shows signs of deepening structural adoption sets the stage for a volatile but fundamentally interesting week ahead for the entire digital asset class, with $SOL proving its resilience as a core infrastructure play. News Analysis The structural migration of liquidity on Solana continues to dominate the narrative, providing a fundamental bedrock that contrasts with the prevailing macroeconomic caution. Here is your detailed main body report for $SOL. Decentralized Dominance: DEX Volume Eclipses CEX The most compelling data point for Solana holders this weekend is the sheer shift in trading activity towards its decentralized infrastructure. Reports from mid-December indicate that Solana’s on-chain DEX trading volume has surpassed the combined spot volumes of both Binance and Bybit for a period, a historic first that signifies a profound structural adoption of on-chain execution layers. This isn't a one-off event; Solana has reportedly led all blockchains in DEX volume for sixteen consecutive weeks, carrying double the volume of Ethereum at times and capturing over 50% market share in peak periods. This on-chain leadership is fueled by low fees and high throughput, drawing users who save on exchange costs by routing directly through Solana’s infrastructure. Network Health & TVL Consolidation Despite the record trading volumes, the ecosystem is undergoing a necessary "liquidity reset" phase. The Total Value Locked (TVL) has stabilized around 8.81 billion, while DEX volumes have hit a robust 3.9 billion in recent reporting, confirming that network activity remains strong even as speculative capital cools. While this TVL figure reflects a slight retracement from a higher 2025 peak of over $10.2 billion, the network’s sustained user base with millions of daily active addresses shows engagement remains high, indicating that adoption is becoming deeper, not just wider. Furthermore, network upgrades like SIMD-0411 are reportedly driving disinflationary mechanics, aiming to reduce the long-term inflation rate to 1.5%, which enhances token scarcity a key long-term value driver. Revenue Milestones and Institutional Confidence Solana's fundamental strength is quantified by its economic output. The network has reportedly generated over 2.85 billion in annual revenue between October 2024 and September 2025, a figure that notably surpasses Ethereum's growth trajectory at a comparable stage. Trading and DeFi platforms account for nearly 40% of this revenue, highlighting the success of the decentralized finance layer. This institutional confidence is further evidenced by ongoing ETF inflows and growing adoption among traditional finance players, positioning SOL as a core infrastructure asset. The Macro Picture: Fed Policy and Market Volatility From a macro perspective, Solana is trading near its key accumulation zone of 117–123, showing technical weakness against recent highs near $126 but underpinned by its structural strength. This price action is set against a backdrop of lingering Federal Reserve uncertainty. Following the widely expected December rate cut to the 3.5%–3.75% range, the consensus on 2026 policy is divergent. While the median Fed "dot plot" suggests only one cut for 2026, some analysts predict two cuts, anticipating that economic data, particularly a soft labor market, will push the Fed toward further easing toward a 3% rate range by year-end 2026. This cautious easing environment contrasts with Solana's deepening structural adoption, setting up a potentially volatile period where fundamental adoption could decouple from immediate macroeconomic sentiment. Furthermore, the looming departure of Fed Chair Powell in May 2026 adds a layer of policy uncertainty that the broader crypto market will be watching closely. Investors are currently weighing this macroeconomic hesitation against undeniable on-chain migration, viewing any significant dip as a strategic accumulation opportunity before a potential retest of higher resistance levels. Outlook Conclusion: Solana's Structural Shift Redefines Market Leadership The narrative surrounding Solana this week is overwhelmingly positive, defined by a fundamental structural migration of trading activity onto its decentralized rails. The most significant takeaway is the unprecedented milestone of Solana’s on-chain DEX volume eclipsing the combined spot volume of centralized giants like Binance and Bybit a historic testament to the platform's superior throughput and low-cost execution. This leadership, maintained for sixteen consecutive weeks, signals a profound shift in user preference toward on-chain settlement. While Total Value Locked (TVL) has stabilized near $8.81 billion following a peak, indicating a necessary cooling of purely speculative capital, the persistent, robust DEX volume confirms that user engagement is deepening. Coupled with the introduction of disinflationary network upgrades targeting a 1.5% inflation rate, Solana is cementing a long-term value proposition built on utility, not just hype. For the next 24-48 hours, investors should closely monitor whether the current 8.81B TVL support level holds firm against any broader market volatility, and critically, if the DEX volume dominance continues to widen its gap against competing Layer-1s. The decentralized dominance trend appears set to remain the key driver for SOL. *** *Disclaimer: This report is for informational purposes only and does not constitute financial advice. Always conduct your own thorough research before making investment decisions.*