Solana has been having a rough time lately, dropping 33% over the past month, 25% weekly, and 8% in just last 24 hours. Right now, Solana is sitting at $128.14, with its market cap shrinking to $65.22 billion.
While the Sol price is sliding down quickly, the trading volume has already doubled, suggesting most of the holders are selling.
At the start of 2025, Solana was in a much stronger position, but since then, it’s lost nearly 29% of its value. This is even though the US government added it to the US Digital Asset Stockpile, alongside Cardano (ADA) and XRP. Many expected this to be a game-changer, but it hasn’t done much to stop the downtrend.
A big part of the problem seems to be where all the new liquidity is going. Since January, over $9.5 billion worth of USDC stablecoins have been minted on Solana, but only a small part has flown into Sol token, as much of it has ended up in memecoins. This means Solana hasn’t gotten the boost it needed, leaving investors frustrated.
On top of that, a lot of investors are pulling their money out of Solana entirely. In February alone, $485 million left the network, with funds moving to Ethereum, Arbitrum, and Binance Smart Chain instead. This shift seems to be driven by a lack of trust after a wave of memecoin scams burned investors.
Solana traders have also been hit hard by liquidations. Just in the past 24 hours, a total of $26.55 million in trades were wiped out. Most of these were long positions of $23.45 million worth, suggesting that people who bet on a rebound are being caught off guard.
Adding to the mess, one of the biggest memecoin scams in recent history happened on Solana. The Libra token, which even got an endorsement from Argentine President Javier Milei, turned out to be a rug pull. Insiders drained $107 million, crashing the price by 94% in just hours and erasing a staggering $4 billion in investor money.
The broader crypto market isn’t looking much better. Right now, the global market cap is sitting at $2.71 trillion, down 4.29% in a day. The recent White House Crypto Summit on March 7, which was supposed to bring some much-needed optimism, has seemingly had the opposite effect.
The entire crypto community had high hopes for this event, but instead of a rally, the market has been crashing since. Bitcoin is down 5%, Ethereum is down 6%, and the negative sentiment is spreading.
Also Read: BTC struggles below $84K despite Trump Crypto Summit push
