Solana has been having a tough time currently, dropping 33% over the previous month, 25% weekly, and eight% in simply final 24 hours. Proper now, Solana is sitting at $128.14, with its market cap shrinking to $65.22 billion.
Whereas the Sol value is sliding down shortly, the buying and selling quantity has already doubled, suggesting many of the holders are promoting.
Firstly of 2025, Solana was in a a lot stronger place, however since then, it’s misplaced almost 29% of its worth. That is despite the fact that the US authorities added it to the US Digital Asset Stockpile, alongside Cardano (ADA) and XRP. Many anticipated this to be a game-changer, however it hasn’t completed a lot to cease the downtrend.
A giant a part of the issue appears to be the place all the brand new liquidity goes. Since January, over $9.5 billion value of USDC stablecoins have been minted on Solana, however solely a small half has flown into Sol token, as a lot of it has ended up in memecoins. This implies Solana hasn’t gotten the increase it wanted, leaving buyers pissed off.
On high of that, a variety of buyers are pulling their cash out of Solana solely. In February alone, $485 million left the community, with funds shifting to Ethereum, Arbitrum, and Binance Sensible Chain as a substitute. This shift appears to be pushed by an absence of belief after a wave of memecoin scams burned buyers.
Solana merchants have additionally been hit exhausting by liquidations. Simply previously 24 hours, a complete of $26.55 million in trades have been worn out. Most of those have been lengthy positions of $23.45 million value, suggesting that individuals who guess on a rebound are being caught off guard.
Including to the mess, one of many greatest memecoin scams in current historical past occurred on Solana. The Libra token, which even bought an endorsement from Argentine President Javier Milei, turned out to be a rug pull. Insiders drained $107 million, crashing the worth by 94% in simply hours and erasing a staggering $4 billion in investor cash.
The broader crypto market isn’t wanting significantly better. Proper now, the worldwide market cap is sitting at $2.71 trillion, down 4.29% in a day. The current White House Crypto Summit on March 7, which was alleged to deliver some much-needed optimism, has seemingly had the alternative impact.
The complete crypto neighborhood had excessive hopes for this occasion, however as a substitute of a rally, the market has been crashing since. Bitcoin is down 5%, Ethereum is down 6%, and the destructive sentiment is spreading.
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