Solana Prices Plunge 40% In A Month As ‘Perfect Storm’ Fuels Losses

Solana costs have declined greater than 40% in roughly a month as a number of bearish components mixed to create what one analyst described as a “excellent storm.”

SOL, the native digital asset of the high-performance blockchain platform Solana, fell to nearly $160.00 on Tuesday, February 18, based on Coinbase data from TradingView.

At this level, the cryptocurrency had dropped near 45% after climbing to roughly $290.00 on Sunday, January 19, further Coinbase knowledge from TradingView reveals.

“Solana’s current 40% value drop might be attributed to a number of converging components,” Aran Hawker, CEO of CoinPanel, who offered the “excellent storm” description, acknowledged through e-mail.

“The meme coin frenzy that after fuelled pleasure has cooled, resulting in declining investor confidence,” he stated.

“Moreover, on-chain exercise has plummeted, with lively addresses and transaction volumes sharply lowering,” famous Hawker.

Just lately, the X (Twitter) account of blockchain analyst Ali (@Ali_charts) shared a Glassnode graph indicating that the variety of lively addresses on the Solana declined from greater than 18.5 million in late October to lower than 8.4 million on February 15.

Joe DiPasquale, CEO of cryptocurrency hedge fund supervisor BitBull Capital, additionally commented on these developments, emphasizing that they lowered each beneath engagement and demand.

The analyst additionally highlighted the affect of current developments involving LIBRA coin, a undertaking that rapidly collected a market capitalization of $4.5 billion, however then misplaced 90% of its worth, based on CoinDesk.

Argentina President Javier Milei endorsed this digital asset, tied to a undertaking named Libra which was supposedly designed to assist generate funding for small and medium-sized firms primarily based in Argentina, through a publish on X, however then later deleted the publish, CoinDesk reported.

These occasions undermined investor confidence in Solana-based tasks, claimed DiPasquale.

One other main growth analysts cited as offering bearish strain for SOL costs is the March 1 token unlock, which is able to outcome within the token’s complete provide increasing by 11.16 million.

“The looming unlock of over 11 million SOL tokens has additionally raised fears of oversupply, additional pressuring the market,” stated Hawker. “We have now seen an inflow of establishments swapping out SOL for ETH with this strain looming.

“Compounding these points, Solana’s affiliation with high-profile scams has broken its status, including to the bearish sentiment. Collectively, these parts have created an ideal storm for SOL’s downturn,” he concluded.

One market observer supplied a distinct perspective, specializing in how bitcoin’s value motion and the LIBRA scenario each impacted different digital currencies.

“Since January 2025 Bitcoin topped off at about $109,000 which we all know was primarily fueled by the primary professional crypto administration in American historical past that acted as basic evaluation and the demand of Bitcoin ETFs, based on Bitwise inflows in 1/25 hit ~$5 Billion,” stated the TikTok influencer who goes by Wendy O.

“Since then we have now seen Bitcoin commerce sideways $94,000-$104,000 on the weekly chart. This has triggered a number of unfavourable value motion for altcoins,” she acknowledged.

The chart belows bitcoin’s current value motion:

“Solana has additionally topped off at ~294 January 2025 which aligns with Bitcoin value motion,” Wendy O stated through emailed feedback.

“Sadly, with the Argentina Memecoin LIBRA debacle that uncovered some dangerous actors and builders on the Solana blockchain, the entire total trade has been impacted. The USA nonetheless doesn’t have set pointers on crypto regardless of President Trump’s government order and this incident has been in comparison with the autumn of FTX sentiment sensible.”

Disclosure: I personal some bitcoin, bitcoin money, litecoin, ether, EOS and SOL.