Solana has entered a clear bear market as realized losses now exceed total profits.
SOL price hovered around $135–$137, reflecting weak liquidity amid increased sell pressure.
Network strain and broader cryptocurrency market declines are further intensifying Solana’s downward trend.
Solana is officially in bear market, with recent on-chain statistics highlighting more losses made compared to profits. The ratio of realized profit/loss is on its way to below-healthy standards. Lower margins for an extended period of time usually signals that the market is in stress, prompting sellers to unload at lower prices than they expected.
This trend has emerged as one of the major indicators that the token seems to be transitioning from a bullish phase into bearish movement.
Recently, Solana prices have shown weakening sentiments. Large indices listed SOL at approximately $135-137, with readings at $137.40 on global market aggregators and $136.80 for large exchanges. Although market volumes were high, its cumulative trend for the Solana price chart has been going downward since early December.
These price points remain well below previous surges seen at various times throughout 2023, which represents an added risk. Sell-offs during these tough times can potentially generate large price drops based on low liquidity. As a result, Solana’s market price faces challenges relating to stabilization.
Also Read: Why Solana (SOL) May Explode While Bitcoin Heads for a Major Move?
One of the main factors contributing to the current market situation is low liquidity. A substantial amount of SOL that circulates within the market is stuck in staked, unused accounts. As a result, if the market lacks adequate liquidity, selling pressures can significantly impact prices.
Notably, traders have recognized how loss of liquidity can lead to increased volatility – when there are fewer tokens on exchanges, it can trigger a magnified effect on each sale.
Negative signs have also been noticed within SOL’s internal trading metrics. With reports indicating a fall in active validators compared to previously seen heights, these members are important for decentralization and security.
Although some people believe that fewer validators might make it more efficient, it still leads to less confidence. During bear markets, market participants are more conservative about any move that signals instability or a reduction in activity.
Solana’s plunge was not an isolated event. The broader market in the cryptocurrency sector witnessed a steep correction towards the end of November and early December. Large-cap assets like Bitcoin and Ethereum were also down significantly at that time.
This usually affects altcoins more severely as large-cap assets plunge due to higher volatility. Consequently, there was a risk-off sentiment across markets. Leverage positions were unwound, liquidations rose, and money flowed into less-risky assets. The overall risk-off sentiment caused more pain for Solana, pushing its realized profit/loss ratio deeper into the negative territory.
Due to changes in market conditions, there is a new governance proposal within the community, aiming to lower the inflation rates on the Solana network. This strategy seeks to bring about a ‘scarcity effect’ to curb the amount of new coins being created.
While this proposal could make SOL more difficult to accumulate but easier to hold, this change might have a positive impact on token economics. At the current stage, it still needs consideration, and implementation is not yet confirmed.
Not everything that has been happening recently is negative. A big exchange made an announcement about better trading infrastructure for Solana assets, which will support faster, more efficient trade execution. It could be an attractive feature, bringing more people and institutional support to Solana.
Although one such improvement cannot overturn the bear market, it could mitigate the downward pressure, making it easier for traders to enter the market and get started without any delays.
From a charting perspective, Solana is currently operating within a descending form. This pattern is normally seen as a sign of further downward movement. To bring about a transition towards a neutral or bullish trend, it would be necessary for the market to experience prolonged cycles where realized profits can surpass realized losses.
Additionally, there would be a need for heightened liquidity, validator participation, as well as higher inflows from exchanges.
As Solana passes through its bear market period, market analysts are closely observing several factors – staking statistics, validator metrics, usage statistics, as well as total value locked on Solana DeFi platforms.
Notably, some components within SOL are still scaling even when the price keeps falling. This implies that network activity and price are not perfectly correlated. But with price still being the most prominent indicator reflecting market sentiment, Solana will continue facing problems with stronger buying pressure in the market.
Also Read: Can SOL Hit $315? Important Chart Signal You Can't Miss
Solana's movement into a bearish zone represents a major change in market dynamics. At a price range of $135-$139 on December 12, 2025, factors such as liquidity, declining validator sentiment, and crypto-market liquidations catapulted Solana into bear market conditions.
Now, recovery depends on better on-chain profitability and more advantageous trading conditions, as well as good governance practices targeted to ensure overall economic viability.
1. Why has Solana entered a bear market?
Solana entered a bear market as realized losses started to outweigh profits, signaling reduced confidence and increased selling pressure.
2. What is the current price range of SOL?
SOL traded around $135–$137 on December 12, 2025, reflecting ongoing weakness in market sentiment.
3. What factors are contributing to Solana’s decline?
Falling liquidity, lower validator participation, and a broader crypto-market downturn are the main factors driving Solana’s decline.
4. Is there any positive development for Solana right now?
A major exchange introduced faster trading support for Solana-based assets, which may improve liquidity and market accessibility.
5. Can Solana recover from this downturn?
Recovery is possible if liquidity improves, realized profits rise again, and network participation strengthens over the next market cycles.
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