Solana (SOL) is facing intense selling pressure, with its price plummeting 18% in the past week. The ongoing memecoin collapse has triggered panic across the ecosystem, leading to a mass exodus of traders. Over the last 24 hours, SOL fell another 10%, largely driven by the pump-and-dump crash of LIBRA, a Solana-based memecoin.
Meanwhile, the total crypto market cap has dropped 5%, currently standing at $67.2 billion, with a daily trading volume of $7.35 billion.
Solana’s Network Activity Drops 55%—A Sign of Trouble?
According to data shared by Ali, Solana’s active addresses have dropped from 18.5 million in November to just 8.4 million, marking a 55% decline.
The situation gets even worse when analyzing transaction volume. The total volume transferred on the Solana network has plummeted from $2 billion in November to just $26 million today—a staggering 99% drop. This suggests that Solana’s momentum has come to a screeching halt, with traders fleeing the network.
$7 Billion SOL Unlock Incoming—More Selling Pressure Ahead?
Adding to the bearish sentiment, 15 million SOL tokens (worth $7 billion) are set to unlock over the next three months. With an annual inflation rate of 4.715%, this surge in circulating supply could place even more downward pressure on SOL’s price.
Currently, Solana is trading at $168.69, down 40% over the past month, with a trading volume of $5.75 billion and a market cap of $82.5 billion.
Solana Memecoin Mania is Dying
Solana’s explosive growth in late 2023 was fueled by memecoin hype, particularly due to low fees and easy token minting via platforms like Pump.fun. However, the memecoin frenzy is now fading, with LIBRA and MELANIA being prime examples of insider dumps and potential rug pulls.
- LIBRA saw a massive surge when Argentine President Milei retweeted a tutorial on buying the token, sending its price skyrocketing—only to collapse immediately. Now, lawyers are investigating potential fraud charges against him.
- MELANIA, a Trump-themed memecoin, is now being linked to LIBRA, with analysts suggesting the same insiders launched both tokens. Allegations of insider trading and rug pulls continue to surface, further damaging Solana’s reputation.
Can a Spot Solana ETF Save SOL?
As traders exit and sentiment weakens, Solana’s best hope for a bullish reversal lies in the approval of a spot SOL ETF. While the concept is still speculative, such an ETF could inject fresh institutional capital into the ecosystem, providing much-needed stability.
For now, Solana faces an uphill battle, with declining network activity, a collapsing memecoin sector, and massive upcoming token unlocks that could further drive the price down.
Disclaimer:
This article is for informational purposes only and should not be considered financial or investment advice. CryptosNewss.com and the author are not responsible for any financial losses incurred. Readers should conduct their own research before making investment decisions.
