Solana has fallen practically 29% because the begin of 2025, regardless of the injection of $10 billion in new liquidity and its inclusion within the US Digital Asset Stockpile, in line 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 value of newly minted USDC (USDC) stablecoins since Jan. 1, 2025, according to crypto intelligence platform Lookonchain.
Supply: Lookonchain
Some analysts counsel that the newly minted liquidity has flowed into memecoins somewhat than boosting SOL’s value.
SOL is at present down 49% because the 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
In the course of 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, informed Cointelegraph.
Solana’s value lower comes throughout a wider market downturn that noticed the whole market capitalization of all cryptocurrencies fall practically 17% because the starting of 2025.
Associated: Binance is not ‘dumping’ Solana and other token holdings — Spokesperson
Buyers search security as Solana faces capital outflows
A part of Solana’s downtrend may be attributed to buyers looking for safer belongings 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 members, in line with 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% previously month to 59.6%,” the report said.
”A number of 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 worth 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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