The post Solana (SOL) Price Faces Pressure Amid Declining Onchain Activity and Upcoming Token Unlocks appeared on BitcoinEthereumNews.com.

Solana’s native cryptocurrency SOL has faced significant price declines due to decreasing DeFi activity and upcoming token unlock events. The decline in Solana’s price not only reflects market sentiment from the recent launch of memecoins but is also indicative of underlying fundamental weaknesses in its DApp ecosystem. “The downturn in onchain activity and the pressures from the lock event are stressing SOL’s market performance,” said a recent analysis from COINOTAG. Solana’s SOL token faces pressure from declining DeFi volumes and upcoming unlocks, compounded by recent memecoin activity affecting market sentiment. Recent Decline: Solana Faces 17% Drop Amid Market Shifts The price of Solana (SOL) has experienced a steep 17% decline from February 14 to February 18, with current trading figures hovering around $164. This substantial drop coincides with the launch and rapid downfall of the Libra memecoin, which saw an 83% price crash soon after its inception—an event tied to Argentina’s President, Javier Milei. However, attributing Solana’s market cap loss of approximately $18 billion solely to this memecoin’s volatility is a significant oversimplification. Declining Onchain Activity Impacts SOL’s Performance Despite the memecoin’s influence, evidence points to a prolonged period of declining volumes in Solana’s decentralized finance (DeFi) platforms. Increasingly, traders showed reduced interest in decentralized exchanges and new project launches, with decreasing onchain activity undermining SOL’s price. Demand for SOL heavily relies on the usage of decentralized applications (DApps), and with fewer participants, its price is adversely affected. The overall sentiment in the memecoin sector mirrored SOL’s decline, further complicating the narrative around its price movements. Solana DEX Volumes Plummet: A Shocking 91% Dip in 30 Days The decline in Solana’s daily trading volume stands out starkly; it fell from a peak of $35.5 billion on January 17 to just $3.1 billion by February 17. This sharp decrease has come…

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Filed under: News - @ February 18, 2025 11:18 pm