Why is SOL Crashing Down ? Is that wallets investors discover ⛔️⛔️
If selling pressure persists, SOL could easily drop a further 30% to about $110.
Solana is experiencing a steep crash. It is now trading below $140 after struggling to
stay above $150 just a day ago. Over the past month, it has lost nearly 45% of its value,
which has caused investors to become nervous.
Why is Solana crashing down?
The upcoming token unlock on March 1 is one of the major reasons for Solana’s drop in
value. In total, around 11.2 million SOL tokens worth about $1.79 billion will be released.
The vast majority of these come from the FTX estate. With such a huge supply hitting the
market, investors worry that heavy selling could push prices down even further.
Many fear that FTX creditors might offload their tokens, adding to the selling pressure.
Plus Solana’s blockchain was booming with meme coin projects. In January, the total
market value of these tokens reached $25 billion. But that excitement has worn off,
and their combined value has dropped to $9.8 billion.
Coins like Dogwifhat, Official Trump, and Pudgy Penguins have lost billions.
Since fewer people are trading them, Solana’s network is seeing lower activity,
which is affecting its price negatively.
Last and not least, Security problems are now an even bigger headache for Solana.
Its reputation has been hit by more than one hack or scam:
There have been links between North Korea’s Lazarus Group and the $1.4 billion Bybit hack.
Investigators found that wallets involved in the Bybit hack were also used for Solana-based scams like the Pump.fun rug pull.
Previous incidents, like the $107 million Libra token scam, have further damaged trust in the Solana ecosystem.
