The price of Solana has decreased in recent weeks due to several key factors:
Market correction: Solana reached an all-time high of $295 in January, but has since fallen by 50% due to a natural market correction.
Liquidity outflow: Nearly $500 million has been transferred to other blockchains such as Ethereum and Arbitrum, which has reduced the demand for SOL.
Decrease in total value locked (TVL): Solana's TVL fell from $12 billion to $7.13 billion, indicating lower confidence in the ecosystem.
Token unlock: On March 1, 11.16 million SOL were unlocked, leading to significant selling pressure.
Technical and trust issues: The network has faced outages and centralization problems, affecting investor perception.
Collapse of the memecoin market: The market capitalization of memecoins on Solana fell from $25 billion in December to $8.3 billion, impacting activity on the network.
