Solana (SOL) has fallen by 6.2% in just 24 hours, with the price dropping to $166.42, marking the lowest level since mid-December last year. This decline comes as the cryptocurrency market is once again in turmoil, with the collapse of the memecoin LIBRA associated with the Solana blockchain serving as the main trigger.

Solana's decline: The chain reaction of the LIBRA scandal

In the past 24 hours, Solana's price has dropped by 6.2%, and it has accumulated a decline of 16.5% over the past week, plunging 39.1% compared to a month ago. This drastic fluctuation is primarily due to the catastrophic failure of the memecoin LIBRA. Despite receiving support from Argentine President Javier Milei, its value collapsed rapidly after launch, with a market cap evaporating by over $4.4 billion in just a few hours.

Milei's initial endorsement of the LIBRA project quickly turned into denial, which subsequently led to fraud allegations against him. Meanwhile, the LIBRA project has also been suspected of insider trading. Blockchain investigations further revealed connections between the issuer of LIBRA and another memecoin, MELANIA (related to former First Lady Melania Trump).

Impact on the Solana ecosystem

These controversies have negatively affected the Solana ecosystem. While Solana has attracted a large number of developers with its fast transaction speeds and low costs, the reputational issues surrounding the memecoin project may deter some institutional investors.

With the increasing uncertainty in the cryptocurrency market and the escalating tensions in the memecoin sector, Solana needs to restore investor confidence as soon as possible to avoid further declines in the coming weeks.

The high-risk nature of cryptocurrencies

This event highlights the extreme volatility of the cryptocurrency market, especially in the memecoin sector. Public support and speculative behavior often lead to extreme price fluctuations. The entire crypto community is closely watching how Solana will respond to the current turmoil and assessing whether it can recover from this crisis.#加密货币普及