Solana has fallen practically 29% for the reason that begin of 2025, regardless of the injection of $10 billion in new liquidity and its inclusion within the US Digital Asset Stockpile, in keeping with TradingView information.
The lower comes regardless of 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 regardless of seeing over $9.5 billion price of newly minted USDC (USDC) stablecoins since Jan. 1, 2025, in keeping with crypto intelligence platform Lookonchain.
Supply: Lookonchain
Some analysts counsel that the newly minted liquidity has flowed into memecoins moderately than boosting SOL’s value.
SOL is at present 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
Throughout the Trump coin launch, “a lot of the inbound liquidity was outflow from different crypto belongings, 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, advised Cointelegraph.
Solana’s value 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.
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Traders search security as Solana faces capital outflows
A part of Solana’s downtrend can also be attributed to traders looking for safer belongings following the current 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 members, in keeping with a Binance Analysis report shared with Cointelegraph.
Solana outflows. Supply: deBridge, Binance Analysis
“Total, there’s a broader flight in the direction of security in crypto markets, with Bitcoin dominance rising 1% previously month to 59.6%,” the report acknowledged.
”A number of the capital flowed into BNB Chain memecoins, pushed partly by CZ’s tweets about his canine, Brocolli,” it added.
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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 challenge’s insiders allegedly siphoned over $107 million price of liquidity in a rug pull, triggering a 94% value collapse inside hours and wiping out $4 billion in investor capital.
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