The post SOL Drops 8.2% as Meme Coin Sentiment Tanks appeared on BitcoinEthereumNews.com.

The price of Solana has dropped by 8.2% in the last 24 hours. At the current price of $167, SOL is down 40% from its $280 all-time high, which was reached on January 19.  Today’s SOL price drop is not isolated, as BTC (-1.1%), ETH (-4.7%) and XRP (-4.7%) have also posted negative performance in the last 24 hours. However, Solana has some additional negative catalysts that are contributing to its underperformance. Sentiment surrounding the Solana ecosystem has degraded significantly as major Solana-based meme coins have seen massive price crashes, and new token launches have been mired by rug pulls and insider trading accusations. Recently, Argentina’s president Javier Milei briefly promoted the LIBRA meme token on his X (formerly known as Twitter account), which rapidly increased to $4.5 only to crash to $0.13 (-97%) in the span of just about 7 hours.  The insider trading allegations surrounding LIBRA and other recent token launches have shined a negative light on Solana’s meme coin ecosystem, which was the main catalyst of the activity on the Solana blockchain. SOL’s all-time high was reached on January 19, just two days after the Trump-backed meme token TRUMP launched on Solana. However, even “established” Solana-based tokens have been performing extremely poorly as of late. Here are a few notable examples: Some on-chain indicators are also suggesting a slowdown in the Solana ecosystem. For example, the number of daily active addresses has decreased from 6.6 million in late November 2024 to 4 million at the moment, according to data from The Block.  Per data from DeFi Llama, trading volume on Solana has decreased substantially from the peak triggered by the TRUMP token launch. However, the current daily trading volume of $3 billion is still comparable to the trading volume Solana saw in November and December last year,…

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Filed under: News - @ February 18, 2025 6:21 pm