Solana plunged by 40% in a month

Solana’s (SOL) price has fallen 40% since its peak of $ 293 on January 19. At the time of the last trading, it dropped below $ 170, which is the lowest level since November 2024. The main reason for the fall was the decline in the hype around meme coins, which previously stimulated the activity of the Solana network.

The sharp increase in the popularity of the Solana blockchain was due to its low commission costs, which made it attractive for meme tokens. However, most of them had no utility, and many projects turned out to be ordinary pump-and-dump schemes (artificially inflating the price before it collapses). According to crypto analyst Ash Crypto, insiders earned more than $ 200 million from manipulating the launch of meme coins, and retail investors suffered the main losses.

Crypto trader Xremlin called the situation at Solana worse than the FTX crash. He believes that the asset sale was caused by the scandals around the MELANIA and LIBRA tokens, which initially grew rapidly and then experienced massive sales, causing losses to traders.

Against this backdrop, Ethereum (ETH) showed the opposite trend, rising to $ 2,830, the highest in the last 12 days. However, the market subsequently pulled it down, and ETH dropped below $ 2,700 again. The total capitalization of the crypto market fell by 3% to $ 3.27 trillion, with SOL becoming the main outsider among the top 40 assets.

Despite the significant losses, the crypto community does not rule out a possible recovery of Solana after the market is cleared of speculative tokens. Analysts believe that the real potential of the network will be determined by its technological capabilities, not by short-term trends in meme coins.