Solana has fallen almost 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 knowledge.
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 value 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 relatively 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
Throughout the Trump coin launch, “many of the inbound liquidity was outflow from different crypto property, folks promoting their crypto portfolio to purchase TRUMP in excessive FOMO [fear of missing out],” Dan Hughes, founding father of the decentralized finance platform Radix, informed Cointelegraph.
Solana’s worth lower comes throughout a wider market downturn that noticed the entire market capitalization of all cryptocurrencies fall almost 17% for the reason that starting of 2025.
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Buyers search security as Solana faces capital outflows
A part of Solana’s downtrend can also be attributed to buyers looking for safer property following the latest wave of memecoin scams.
Solana was hit by over $485 million value 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 contributors, in keeping with 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% prior 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.
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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 value of liquidity in a rug pull, triggering a 94% worth collapse inside hours and wiping out $4 billion in investor capital.
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