$SOL

Solana's Price Plummets 50% from Its All-Time High: What's Behind the Decline?

Solana's (SOL) token price has experienced a significant decline of 50%, dropping to $139 per coin from its all-time high of $295 in January. Solana's Total Value Locked (TVL) has also decreased by nearly half, from $12 billion to $7.13 billion. This decline has directly impacted the on-chain volume, which has shrunk from $97 billion per week to just $7 billion currently, indicating reduced activity on the Solana network.

In the last 30 days, approximately $500 million in liquidity has shifted to competing blockchains like Ethereum (ETH), Sonic (S), and Arbitrum (ARB). According to Miles Deutscher's analysis, Solana's burn fee has dropped to its lowest point in the past month, reaching $177,000. Furthermore, Solana's meme coin sector, which once reached a collective market capitalization of $25 billion, has now shrunk to just $8.3 billion, with a 23% decline in the last 24 hours.

As a side note, Bitcoin (BTC) dropped to $86,047 on Tuesday (February 25), while Ethereum also declined to $2,317 per coin. _Not Financial Advice. Do Your Own Research_