In recent weeks, the price of SOL has plummeted by 17% to $164, causing panic among investors. The event was largely linked to the LIBRA memecoin scandal, which collapsed by 83% after being fueled by rumors involving Argentine President Javier Milei. But is this the real reason for Solana’s $18 billion market cap drop?
Like this post if you are invested in Solana or are following this market turbulence!
The real reason behind the fall of the SUN
The truth is that Solana was already showing signs of weakness even before the LIBRA controversy. The decline in TVL of DApps, the drop in on-chain activity and a major token unlock approaching are all factors that weighed on the network’s performance.
Trading volume plummets 91%
On January 17, Solana saw a peak of $35.5 billion in daily volume, driven by the hype surrounding the Official Trump memecoin ($TRUMP ). However, just a month later, that volume had fallen to $3.1 billion, revealing a growing disinterest among traders.
Meanwhile, competing networks like BNB Chain saw a 35% growth, led by platforms like Thena, Uniswap, and DODO. This shows that the market is still active — but the capital flow is moving to other ecosystems.
TVL falling and token unlocking in sight
Deposits on Solana’s DApps have taken a hit, falling 19% in just two weeks. By comparison, Ethereum’s TVL has fallen just 2%, while BNB Chain has risen 8% in the same period.
Additionally, a major factor that investors are concerned about is the imminent unlocking of over 15 million $SOL in Q1 2025, adding $2.5 billion to the circulating supply. This unlocking represents 12 times more than the previous quarter, which could generate even more selling pressure.
And now, does SOL still have a future?
The recent drop may have been amplified by the LIBRA scandal, but the data shows that Solana’s problem runs much deeper. With on-chain activity dropping and unlocks on the horizon, can $SOL recover?
What do you think? Is Solana cheap or is the decline not over yet? Comment below!
Fonte: Coinstelegraph
Disclaimer: This content is not investment advice. Please do your own research and be fully informed before making any decisions.
