SOLANA’s Aboriginal token, SOL (SOL), fell 17% between February 14 and February 18 and is currently traded near $ 164. The decline coincides with the launch of Libra Memecoin, a Libra Memecoin associated with Javier Milei. The Libra has a price of 83%after the initial investors offset their stakes.
However, it is too simplified to only occur in Memecoin Pump-Dump only only the market cap of $ 18 billion in SOL. In particular, I saw Solana’s Distribution Finance (Defi) applications much less than the main token lock and deposit decrease. MEMECOINS also followed the price behavior of SOL, and weakened the claim that this division was a major driver.
SOL/USD vs. Solana Memecoins, 4 hours. Source: TradingView / COINTELEGRAPH
Memecoins was not directly responsible for the decrease in SOL, but traders have shown that interest in the starting of the distributed exchanges and new projects has decreased. Since the demand for the default cryptocurrency is led by the use of an application (DApp), which is distributed, the inflow and reduction of onChain activity of the participants have had a negative impact on the price of SOL.
Solana DEX volume has decreased 91% over 30 days
Solana, USD’s daily Dex volume. Source: Defillama
After reaching the peak at $ 3.55 billion daily on January 17, Solana’s Onchain Activity dropped sharply to $ 3.1 billion on February 17.This surge in the official Trump (Trump) memes initially. It was led by overdose. Market capital is based on US President Donald Trump’s public approval.
Despite the decrease in Solana’s 20% Dex volume per share, some competitors have seen different results. For example, the BNB chain has surpassed Solana as a market leader by 35% over last week. Major contributors included THENA, which doubled uniswap, doubling, doubling uniswap, with a 53%increase of 53%between February 10 and February 17.
SOLANA tvL falls 19% ahead of the large SOL lock for two weeks.
The deposit for Solana’s distributed applications (DAPP) measured by total value lock (TVL) also lowers competitors. In particular, this metrics are not much related to the trading and token launches that are notes as liquid staying, permanent contracts and yield platforms dominate the TVL configuration.
Solana network total value lock (tvL), USD. Source: Defillama
The deposits of Solana Dapps have been reduced by 19% over two weeks, mainly due to the net leaks of Jito, Kamino, Marinade Finance and Sanctum. During this period, we were able to increase the total value lock (tvL) such as the liquidity clause applications, Meteora and Cross-Margin Perpetual Future Dex.
In contrast, Ether Lee’s tvL decreased by 2% over the same period, while BNB chains increased 8%. The notable performers of the BNB chain included the loan platform Venus and Restaking Platform kernel. If the Libra Memecoin launch is a major cause of low performance, it is expected to have a greater impact on Solana’s onchain indicators after the event. But this is not true.
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Another source of concern for SOL holders is a heavy unlocking schedule in the first quarter of 2025. As reported by Cointelegraph, more than $ 2.5 billion, more than $ 2.5 billion, is expected to be circulated during this period. This event is not surprising to investors, but it represents 12 times the solved soluble SOL in the previous quarter.
Ultimately, SOL’s achievements may be due to the decrease in Onchain trading activities and the decrease in DApps tvL, which was developed for weeks before Libra Memecoin was released on February 14th.
In addition, the upcoming large solo lock release has been fueled to the FUD necessary to create a weakness, raising the price of SOL to the lowest level since November 2024.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.