$SOL

Factors Contributing to the Decline in Solana Prices

1. Decrease in On-Chain Activity and DEX Volume

Activity on the Solana network has drastically decreased, with transaction volume on decentralized exchanges (DEX) dropping by up to 91% in the last 30 days. This decline reflects a decrease in user interest and negatively impacts the price of SOL.

2. Decrease in Total Value Locked (TVL)

TVL in Solana's decentralized applications (DApps) has decreased by 19% in the last two weeks, indicating fund withdrawals by investors from the Solana ecosystem.

3. SOL Token Unlocking Schedule

On March 1, 2025, approximately 11.2 million SOL tokens worth $1.7 billion are scheduled to be released into the market. This increase in supply raises concerns about selling pressure that could further suppress prices.

4. Meme Coin Scandal and Decrease in Investor Confidence

Solana's involvement in meme coin projects like LIBRA, which turned out to be a scam (rug-pull), resulted in significant losses for investors and diminished confidence in the Solana ecosystem.

5. Liquidity Shift to Other Networks

Investors and traders are moving their funds to other networks like Ethereum and BNB Chain, which offer more attractive opportunities, especially in the meme coin sector.