Why has the price of Solana dropped?

The broader collapse of the crypto market is a significant factor, but multiple issues specific to Solana have worsened the decline:

🔹 Fraud with Memecoin LIBRA – The launch of Pump.Fun led to a surge in Solana-based memecoins, fueling pump-and-dump frauds. The LIBRA token scam was one of the most notable cases, undermining investor confidence.

🔹 Decline in Market Capitalization of Solana-based Projects – The total market capitalization of cryptocurrencies related to Solana fell from $25 billion in January to just $8.6 billion.

🔹 Decrease in Gas Fees and DEX Volume – Reduced on-chain activity signals a weakening of investor engagement in the Solana ecosystem.

🔹 Drop in the Number of Active Addresses – A declining user base reflects a loss of confidence in the network.

🔹 Future Token Unlocks – On March 1st, 11.2 million SOL tokens will be unlocked, increasing selling pressure. These tokens come from FTX's distribution plan and may increase market volatility.$SOL

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