😱🔥💥Why Is Solana Declining?💸🥴
Before diving into the current downturn, it's important to ask: What fueled Solana’s rise in the first place?
Traders rushed to buy SOL in pursuit of memecoin profits.
A wave of new investors entered the market, chasing the hype around Trump-themed tokens.
The frenzy extended to other celebrity and political figure-inspired memecoins, such as those linked to Melania Trump.
The emergence of the "Libra" narrative further contributed to SOL’s bullish momentum.
🤣🤣🤣Now, what’s causing the decline?
The very same investors who drove prices up are now exiting their positions. Many are realizing that these memecoins were nothing more than speculative plays, with little to no real value. Meanwhile, developers who profited from these memecoin pumps are cashing out their SOL holdings, adding further selling pressure.
On top of that, a massive 11.2 million SOL unlock is set for March 1, representing roughly $2 billion in tokens re-entering circulation. A significant portion of this supply was acquired through FTX auctions at $64 per SOL by Galaxy, meaning these holders are still sitting on sizable profits. Additionally, by the time this unlock occurs, another $1 billion worth of SOL will have been generated through inflation, creating even more potential selling pressure in the market.
