📉 3 Reasons Why Solana (SOL) Is Down 50% from Its All-Time High 😔🔻
Solana (SOL) has experienced a significant price drop, currently trading at $141.41, which is 50% below its all-time high. Let's explore the top three reasons behind this decline:
1️⃣ Upcoming Token Unlock 🔓
An impending release of 11.2 million SOL tokens, valued at approximately $1.78 billion, is scheduled for March 1. This substantial token unlock is part of bankruptcy proceedings related to the 2022 exchange collapse. Historically, such large releases can increase selling pressure, leading to price declines.
2️⃣ Decline in Total Value Locked (TVL) 📉
Solana's Total Value Locked (TVL) has seen a sharp decrease, indicating reduced activity and confidence in its ecosystem. This decline suggests that investors are moving their assets to other platforms, impacting SOL's price negatively.
3️⃣ Meme Coin Market Collapse 🪙💥
The meme coin market associated with Solana experienced a boom, reaching a market capitalization of $25 billion in December 2024. However, it has since plummeted to $8.3 billion, with many tokens losing 80% to 90% of their value. This collapse has adversely affected investor confidence in Solana's network, contributing to the decline in SOL's price.
📌 #Solana #CryptoDecline #TokenUnlocks:APT #TVL #memecoins
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