SOL, the native token of the Solana community, is without doubt one of the worst-performing cryptos in latest days. As soon as the darling of the meme coin crowd, the favored blockchain is going through its hardest check but with its large value drop and dip in community exercise.
SOL is at the moment buying and selling at $173, but it surely’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.
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Final Tuesday, Solana shed 10% in 24 hours, triggering issues amongst holders and long-term buyers. In keeping with on-chain information, the token drop was partly pushed by the embarrassing launch of LIBRA, which is at the moment 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. In keeping with information shared by crypto analyst Ali Martinez, the chain’s actions are slowing down. A Twitter/X submit shared on February seventeenth famous that the variety of energetic addresses on the community dropped to eight.4 million right this moment from 18.5 million in November 2024. This information displays a 55% drop, an alarming signal that builders are leaving the platform in droves.
Additionally, the overall quantity transferred to the community dropped from $2 billion in November to simply $26 million this week. This 99% drop displays the venture’s lack of momentum.
The entire quantity transferred on the #Solana $SOL community has dropped from $2 billion in November to simply $26 million right this moment! 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 shall be unlocked. And placing the 4.715% inflation charge within the equation, the elevated provide of SOL tokens out there will create promoting stress.
SOL is at the moment 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 buyers hope the spot SOL ETFs shall be authorized within the brief time period.
Are SOL Meme Cash Subsequent?
The SOL value motion benefitted from the surge of newly minted meme cash on the platform. Nonetheless, the variety of tokens minted on the platform has decreased significantly in the previous couple of months. Solana was the platform of selection for degens and builders then, thanks primarily to its quick transactions and low price.
Nonetheless, latest occasions affected the platform’s status, notably the launch of SOL-based meme cash like MELANIA and LIBRA.
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For instance, LIBRA was launched with a lot fanfare, with Argentine President Javier Milei sharing a submit and recommending the venture. Nonetheless, minutes after making his submit public and pushing the brand new token previous $5, it instantly crashed, main many to say it was a traditional “rug-pull.” MELANIA can be linked to LIBRA; some analysts say they share the identical improvement workforce.
Featured picture from Shutterstock, chart from TradingView
