Solana (SOL-USD) noticed a staggering $485 million in outflows all through February as traders scrambled for safer alternate options. In accordance to Binance Analysis, a lot of this capital shifted to Ethereum (ETH-USD), Arbitrum (ARB-USD), and BNB Chain (BNB-USD), reflecting a broader sentiment of threat aversion within the crypto market. “Total, there’s a broader flight in the direction of security in crypto markets, with Bitcoin dominance rising 1% previously month to 59.6%,” famous Binance Analysis.
Macroeconomic Uncertainty and Hacks Shake Confidence
The turbulence didn’t come out of nowhere. Market-wide uncertainty, fueled by macroeconomic issues and the catastrophic $1.4 billion Bybit hack, despatched shockwaves by means of the trade. Binance Analysis highlighted that general cryptocurrency market capitalization dropped 20% in February.
Memecoin Scams on Solana Gas Investor Exodus
Including to the chaos, the collapse of Solana-based memecoin initiatives, including Libra, solely worsened sentiment. The token, which had been endorsed by Argentine President Javier Milei, turned out to be a traditional rug pull. Insiders allegedly drained over $107 million, main to a 94% value collapse inside hours and wiping out $4 billion in investor capital. Anastasija Plotnikova, CEO of Fideum, criticized the shift within the memecoin area, stating, “Insider rings, pump-and-dump schemes, and sniper teams have changed the natural, collectible nature of authentic memecoins, creating an unhealthy enjoying area.”
Stablecoins and RWAs Surge as Investors Search Stability
Whereas Solana bled capital, stablecoins and real-world belongings (RWAs) surged to all-time highs. On-chain RWAs hit $17.1 billion, whereas stablecoins exceeded a report $224 billion, in accordance to Cointelegraph. Alexander Loktev, chief income officer at P2P.org, predicted RWAs may hit $50 billion in 2025 as traders search predictability in unsure instances.
Crypto’s Flight to Safety Continues
The current turmoil has proven a transparent shift in investor habits. With scams, hacks, and financial uncertainty looming, many are enjoying it secure. If these tendencies persist, Solana may face an uphill battle in regaining investor belief.
On the time of writing, Solana is sitting at $141.42.
