Solana (SOL) Price has decreased 50% since it recorded the highest record of $ 295 on January 19. The 42% Drawdown in February is the largest monthly RBI since November 2022, when FTX Exchange collapsed.
Solana’s 4-HOUT chart. Source: COINTELEGRAPH/TradingView
Solana’s 11.2 million token locks and competent uncertainty may play a role in the current decline, but there is a fundamental reason for providing a better explanation for recent modifications.
Solana’s TVL has declined $ 5 billion since January 25
Solana surpassed $ 1 billion in high total value locks (TVL) in January and decreased after reaching the best. It has fallen to $ 7.1 billion after reaching $ 12 billion TVL.
Solana tvL and onChain volume. Source: Defillama
According to DEFILLAMA’s data, the subsequent decrease in the TVL was led by Raydium and reduced by 60% in less than a month. Other major distributed applications, such as Jupiter Dex, Jito Liquid Stacking and Kamino Lending, have registered 25%, 46% and 33%, respectively.
They had a direct impact on Solana’s ONCHAIN volume, falling from $ 97 billion per week to $ 7 billion this week in the second week of January.
The metrics showed a remarkable change in trust in Solana ecosystems, and the activities have been greatly reduced over the last month.
Ether Leeum, Arbitration and other block chains of $ 500 million
The collapse of the SOL Price and the network caused the change of earthquake of the trader, and most of the liquidity is moving to another chain. In the last 30 days, merchants have had nearly $ 500 million in other chains, and Ether Leeum, Sonic and Arbitration are remarkable destinations.
Solana leaks data into another chain. Source: Debridge.finance
Encryption analyst Miles deutscher emphasized that Solana’s commission burns at the lowest value of $ 177,000 a month.
“People are tired of being burned in the casino and many are far from the table.”
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Collapse
As its influence increased, Solana’s Memecoin market cap reached $ 25 billion in December 2024. The current value has decreased to $ 8.3 billion, and a 23%collision has occurred over the last 24 hours.
Coingeko’s Solana Memecoins. Source: x.com
Since 7.5 million tokens were released in the pump and $ 550 million in sales, most of these memoes in this market decreased from 80% to 90%. SOL is not Memecoin, but the rise and fall of these tokens have influenced the recognized evaluation.
Related: BTC price levels are monitored by Bitcoin Skids at the lowest three months of less than $ 87K.
This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.