Solana’s price is experiencing a drop due to several factors. One of the main reasons is the decline in activity on the Solana blockchain. According to data, the number of daily active addresses has dropped to a three-month low of 3.5 million, reflecting lower adoption and lower market interest¹.

Additionally, the controversy surrounding the meme coin LIBRA, which is hosted on the Solana blockchain, has generated a lot of negative attention and eroded trust in the network. This has led to a decline in demand for SOL and thus a drop in its price².

Another factor that could be contributing to Solana’s price drop is the regular issuance of SOL and the vesting schedule related to the failed FTX-Alameda Research exchange. This could be leading to a higher supply of SOL in the market, which could be putting downward pressure on its price³.

In short, the combination of lower blockchain activity, the controversy surrounding LIBRA, and the regular issuance of SOL could be contributing to Solana’s price decline.