55% Network Drop And Price Woes
Sol is a local token for the Solana network and is one of the worst-performing cryptocurrencies in recent days. Once a darling of the meme coin crowd, the popular blockchain will face the toughest tests, with its price drops and a decline in network activity.
SOL is currently trading at $173, but Leap of nearly 10% From last week’s price to 15% two weeks ago. If we reduce its price history, the token is down 27.5% from last month’s price.
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Solana fell 10% in 24 hours last Tuesday, raising concerns among holders and long-term investors. According to the chain chain data, the token drop is partly due to the embarrassing launch driver Libracurrently under investigation. The dump after Libra’s launch caused panic among meme coin holders, and Thor is one of its most prominent victims.
Network activity fell by 55% and was lower in size
Solana’s current dilemma is beyond the recent price action. According to data shared by crypto analyst Ali Martinez, the chain’s activity is Slow down. Shared on February 17, Twitter/X post noted that the number of active addresses on the network fell from 18.5 million in November 2024 to 8.4 million today. The data reflects a 55% drop, which is a shocking sign that developers are putting the platform in trouble. .
Additionally, the total number of transferred to the network fell from $2 billion in November to just $26 million this week. This 99% drop reflects the loss of momentum in the project.
exist #solana $ sol The network has dropped from $2 billion in November to $26 million today! pic.twitter.com/qgcomjd2it
– ali (@ali_charts) February 17, 2025
SOL faces more challenges
Crypto analysts prepare for the worst of SOL in the next few weeks. Over the next three months, approximately 15 million SOL tokens worth $7 billion will be unlocked. And increasing the inflation rate of 4.715% in the equation, the increase in the supply of Sol tokens in the market will cause sales pressure.
SOL is currently rising, but its price is well below its peak. The token fell 27.5% from last month’s price and had a market cap of about $84 billion. Now, insiders and investors want to get spot Sol ETFs approved in the near term.
Is the Sol Meme coins next?
SOL price action benefited from a surge in newly minted meme coins on the platform. However, in the past few months, the number of tokens minted on the platform has been greatly reduced. Solana At the time, it was the preferred platform for Degens and Developers, thanks mainly to its fast transactions and low cost.
However, recent events have affected the platform’s reputation, especially the launch of SOL-based meme coins such as Melania and Libra.
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For example, Libra is hyped, Argentina President Javier Miley Share the post and recommend the project. But it immediately collapsed after a few minutes of bringing his post public and pushing the new tokens above $5, which many say is a classic “carpet”. Melania is also associated with Libra; some analysts say they share the same development team.
Featured images from Shutterstock, charts from TradingView
