The post Solana: Will a $250M USDC injection spark SOL’s rebound? appeared on BitcoinEthereumNews.com.

Solana has seen a total of 8.75 billion USDC minted since the 1st of January.  Has it impacted SOL? Solana [SOL] began February with a market cap above $100 billion, but at press time, it has declined to $72 billion. Persistent sell-side pressure has outweighed demand, forcing SOL below the $140 support – its lowest level in four months. With 250 million USDC freshly minted on the network, can increased liquidity catalyze a recovery? Solana’s liquidity strain  Since the New Year, 8.75 billion USDC have been minted on Solana, driving network volume to an all-time high of $27.745 billion – coinciding with the TRUMP memecoin launch. However, volume has since retraced sharply to just $1 billion, while leading Solana-based memecoins have recorded double-digit losses.  Source: DeFiLlama This sharp decline suggests liquidity saturation, potentially signaling exhaustion in SOL’s recent rally.  With meme-sector volume down over 50%, the recently minted 250 million USDC may have a diminished impact, limiting SOL’s upside potential. As excess SOL liquidity floods the market amid fading memecoin demand and declining trade volume, the growing supply-demand imbalance raises concerns that Solana may be shifting from a long-term value asset to a short-term speculative play. Fundamentals vs. speculation — Where does SOL’s future lie? Since hitting its ATH of $295, SOL has remained in a sustained downtrend, failing to establish strong support at key retracement levels – unlike its competitors. In previous cycles, SOL broke key resistance levels on election and memecoin-driven “hype”, but the absence of strong demand in bearish conditions now signals a fragile market structure. Source: TradingView (SOL/USDT) Weak bid-side liquidity continues to limit bullish absorption of sell pressure, putting the $140 support level at risk. A short squeeze triggered $2.37 million in liquidations, suggesting the recent rally is largely speculative rather than fundamentally driven.  With…

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Filed under: News - @ March 2, 2025 8:24 pm