Solana ($SOL ) has recently experienced a significant price decline, influenced by several key factors:
1. Network Activity Decline: Active addresses on the Solana network have decreased by approximately 55% since November 2024, dropping from 18.5 million to 8.4 million. This reduction indicates waning user engagement and transaction volumes.
2. Upcoming Token Unlock: A substantial release of $SOL tokens is scheduled for March 1, 2025, with over 15 million tokens (valued at more than $7 billion) set to enter circulation. This influx raises concerns about potential increased selling pressure, which could further depress the token's price.
3. Association with Fraudulent Activities: Solana's reputation has been tarnished by its connection to high-profile scams, notably the $LIBRA memecoin incident. Such events have eroded investor confidence and contributed to the downward pressure on SOL's price.
As of now, Solana's price stands at $166.16, reflecting a decrease of $12.22 (approximately 6.85%) from the previous close.
These combined factors—diminished network activity, impending token release, and negative associations—have collectively contributed to the recent decline in Solana's market value.
Let me know what you guys think in the comments will it start pumping and break it's ATH this month?
