Solana loses 45% due to Trump’s meme-coin

Solana SOL $142.41 Solana -19.76% Market capitalization $72.31 billion VOL. 24 hours $1.82 billion continues to face market pressure, losing more than 45% of its value after the launch of the Official Trump (TRUMP) meme-coin. Since January 18, when the price of SOL reached $ 261, it Coinbase:SOLUSD">has fallen to $ 143 as of March 2.

Analysts believe that the rapid growth in the popularity of meme coins is holding back Solana’s recovery. Dan Hughes, founder of the Radix platform, noted that meme coins usually do not attract new capital, but only redistribute existing funds in the ecosystem. Many investors sold their crypto assets to buy TRUMP, which caused a wave of FOMO (fear of losing profits) and drained liquidity from Solana.

Despite the drop, SOL was able to recover above $ 140 even after a large-scale unlocking of $ 2 billion in tokens, the largest in Solana’s history. on March 1, more than 11.2 million SOLs went into circulation, which raised concerns among investors. Most of these tokens were purchased by companies such as Galaxy Digital and Pantera Capital at a price of $ 64 per SOL during FTX auctions.

In addition to the impact of meme coins, the cryptocurrency market as a whole remains under pressure from macroeconomic factors and frequent hacks. In particular, the $ 1.4 billion hack of Bybit on February 21 affected investor confidence. Analysts emphasize that market recovery will take time until institutional players adapt to new conditions and risks.