The SOL token has faced a significant decline recently, dropping 50% from its peak of $295 in January. This downturn is largely attributed to a decrease in memecoin trading activity, which has impacted the overall market sentiment.
In the last 30 days, SOL has experienced its largest monthly drop since the FTX collapse, falling by 39%. Trading volume peaked at $218 million on February 12 but plummeted by 94% between February 25 and February 26, decreasing from $89.5 million to just $5.03 million.
The decentralized finance (DeFi) sector on Solana is also showing signs of a slowdown. Key points include:
- Total value locked (TVL) has decreased from $12 billion to $7.31 billion since mid-January.
- Raydium, the main decentralized exchange for memecoins on Solana, reported a 50% reduction in its TVL.
Currently, the SOL token is trading at $142, having fallen 15% in the past week. It is facing resistance at the $140 support level, and analysts warn that failing to hold this level could lead to further declines toward the $125–$130 range. Additionally, the upcoming unlock of 11.2 million tokens on March 1 adds to the downward pressure on SOL’s price, complicating the outlook for Solana ETF approval. The future direction of SOL remains uncertain as market confidence continues to diminish.
📎 Related coverage from: cryptotimes.io