Solana noticed almost half a billion {dollars} in outflows final month as traders shifted to what have been perceived to be safer digital belongings, reflecting rising uncertainty within the cryptocurrency market.
Solana (SOL) was hit by over $485 million value of outflows over the previous 30 days, 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 contributors, in response to a Binance Analysis report shared with Cointelegraph.
Solana outflows. Supply: deBridge, Binance Analysis
“General, there’s a broader flight in the direction of security in crypto markets, with Bitcoin dominance growing 1% up to now month to 59.6%,” the report said.
”Among the capital flowed into BNB Chain memecoins, pushed partially by CZ’s tweets about his canine, Brocolli,” it added.
Past Solana, complete cryptocurrency market capitalization dropped by 20% in February, pushed by rising detrimental sentiment, Binance Analysis famous.
Alongside macroeconomic issues, the crypto investor sentiment drop was primarily because of the $1.4 billion Bybit hack on Feb. 21, the biggest exploit in crypto historical past.
Disappointment in Solana-based memecoin launches has additionally curbed investor urge for food, significantly after the launch of the Libra token, which was endorsed by Argentine President Javier Milei.
The undertaking’s insiders allegedly siphoned over $107 million value of liquidity in a rug pull, triggering a 94% value collapse inside hours and wiping out $4 billion in investor capital.
Supply: Kobeissi Letter
“Memecoins have developed from community-driven social experiments right into a chaotic panorama dominated by worth extraction from retail traders,” Anastasija Plotnikova, co-founder and CEO of blockchain regulatory agency Fideum, instructed Cointelegraph, including:
“Insider rings, pump-and-dump schemes, and sniper teams have changed the natural, collectible nature of authentic memecoins, creating an unhealthy taking part in area.”
Associated: Bybit hackers could also be behind Solana memecoin scams — ZachXBT
Stablecoins, RWAs hit document highs amid market uncertainty
Stablecoins and real-world belongings (RWAs) rose to all-time highs as investor capital continued to circulate into extra predictable belongings with steady value or yield-generation mechanics.
Stablecoins, RWAs worth. Supply: Binance Analysis
Stablecoins surpassed the document $224 billion excessive whereas onchain RWAs surpassed a cumulative all-time excessive of $17.1 billion throughout 82,000 asset holders, Cointelegraph reported on Feb. 3.
Associated: Solana sees 40% decline in person exercise as memecoin rug pulls erode belief
Binance Analysis attributed this capital rotation to the current market turbulence:
“Influenced by macroeconomic elements akin to escalating commerce tensions and diminished expectations of rate of interest cuts, the crypto market has had a tough February. In such an surroundings, traders could select to take chips off the desk and maintain stablecoins as a substitute.”
Extra uncertainty in world threat belongings akin to Bitcoin (BTC) and cryptocurrencies could drive RWAs to a $50 billion excessive throughout 2025, Alexander Loktev, chief income officer at P2P.org, an institutional staking and crypto infrastructure supplier, instructed Cointelegraph.
Journal: How crypto legal guidelines are altering internationally in 2025
