Solana has fallen practically 29% for the reason that begin of 2025, despite the injection of $10 billion in new liquidity and its inclusion in the US Digital Asset Stockpile, in response to TradingView knowledge.
The lower comes despite Solana (SOL) being one of many three altcoins included in US President Donald Trump’s Digital Asset Stockpile, together with Cardano’s (ADA) and XRP (XRP).
SOL/USD, year-to-date chart. Supply: Cointelegraph/TradingView
Furthermore, Solana has been unable to interrupt this downtrend despite seeing over $9.5 billion price of newly minted USDC (USDC) stablecoins since Jan. 1, 2025, according to crypto intelligence platform Lookonchain.
Supply: Lookonchain
Some analysts recommend that the newly minted liquidity has flowed into memecoins reasonably than boosting SOL’s worth.
SOL is presently down 49% for the reason that launch of Trump’s Official Trump (TRUMP) token, from $261 on Jan. 18 to $133 on March 9.
SOL/USD, 1-day chart. Supply: Cointelegraph/TradingView
Through the Trump coin launch, “many of the inbound liquidity was outflow from different crypto property, individuals promoting their crypto portfolio to purchase TRUMP in excessive FOMO [fear of missing out],” Dan Hughes, founding father of the decentralized finance platform Radix, instructed Cointelegraph.
Solana’s worth lower comes throughout a wider market downturn that noticed the overall market capitalization of all cryptocurrencies fall practically 17% for the reason that starting of 2025.
Associated: Binance is not ‘dumping’ Solana and other token holdings — Spokesperson
Traders search security as Solana faces capital outflows
A part of Solana’s downtrend may be attributed to buyers looking for safer property following the latest wave of memecoin scams.
Solana was hit by over $485 million price of outflows in February, with investor capital primarily flowing to Ethereum, Arbitrum and the BNB Chain.
The capital exodus got here amid a wider flight to “security” amongst crypto market individuals, in response to a Binance Analysis report shared with Cointelegraph.
Solana outflows. Supply: deBridge, Binance Analysis
“General, there’s a broader flight in direction of security in crypto markets, with Bitcoin dominance rising 1% in the previous month to 59.6%,” the report said.
”A number of the capital flowed into BNB Chain memecoins, pushed in half by CZ’s tweets about his canine, Brocolli,” it added.
Associated: Bitcoin reserve backlash signals unrealistic industry expectations
Disappointment in Solana-based memecoin launches has additionally curbed investor urge for food, notably after the launch of the Libra token, which was endorsed by Argentine President Javier Milei.
The mission’s insiders allegedly siphoned over $107 million worth of liquidity in a rug pull, triggering a 94% worth collapse inside hours and wiping out $4 billion in investor capital.
Journal: ETH whale’s wild $6.8M ‘mind control’ claims, Bitcoin power thefts: Asia Express
