SOL, the native token of the Solana community, is among the worst-performing cryptos in latest days. As soon as the darling of the meme coin crowd, the favored blockchain is dealing with its hardest check but with its huge value drop and dip in community exercise.
SOL is presently buying and selling at $173, nevertheless it’s down practically 10% from final week’s value and 15% from two weeks in the past. If we zoom out on its value historical past, the token is down 27.5% from final month’s value.
Associated Studying
Final Tuesday, Solana shed 10% in 24 hours, triggering considerations amongst holders and long-term traders. Based on on-chain knowledge, the token drop was partly pushed by the embarrassing launch of LIBRA, which is presently underneath investigation. LIBRA’s dump after its launch brought on panic amongst meme coin holders, with SOL as one in every of its most outstanding victims.
Community Exercise Drops 55% With Low Quantity
Solana’s present woes transcend the latest value motion. Based on knowledge shared by crypto analyst Ali Martinez, the chain’s actions are slowing down. A Twitter/X publish shared on February seventeenth famous that the variety of energetic addresses on the community dropped to eight.4 million at this time from 18.5 million in November 2024. This knowledge displays a 55% drop, an alarming signal that builders are leaving the platform in droves.
Additionally, the entire quantity transferred to the community dropped from $2 billion in November to only $26 million this week. This 99% drop displays the undertaking’s lack of momentum.
The overall quantity transferred on the #Solana $SOL community has dropped from $2 billion in November to only $26 million at this time! pic.twitter.com/qgCOmjd2It
— Ali (@ali_charts) February 17, 2025
Extra Challenges Up Forward For SOL
Crypto analysts are bracing for the worst for SOL within the subsequent few weeks. Over the subsequent three months, round 15 million SOL tokens valued at $7 billion might be unlocked. And placing the 4.715% inflation charge within the equation, the elevated provide of SOL tokens available in the market will create promoting strain.
SOL is presently up, however its value is method under its peak. The token is down 27.5% from final month’s value and boasts a market capitalization of round $84 billion. Now, insiders and traders hope the spot SOL ETFs might be accepted within the quick time period.
Are SOL Meme Cash Subsequent?
The SOL value motion benefitted from the surge of newly minted meme cash on the platform. Nevertheless, the variety of tokens minted on the platform has decreased significantly in the previous few months. Solana was the platform of selection for degens and builders then, thanks primarily to its quick transactions and low price.
Nevertheless, latest occasions affected the platform’s status, significantly the launch of SOL-based meme cash like MELANIA and LIBRA.
Associated Studying
For instance, LIBRA was launched with a lot fanfare, with Argentine President Javier Milei sharing a publish and recommending the undertaking. Nevertheless, minutes after making his publish public and pushing the brand new token previous $5, it instantly crashed, main many to say it was a basic “rug-pull.” MELANIA can also be linked to LIBRA; some analysts say they share the identical improvement group.
Featured picture from Shutterstock, chart from TradingView