Solana Network Activity Drops 55% Amid Price Decline

SOL, the token of the Solana network, is experiencing significant price declines and reduced network activity. Currently trading at $173, it has dropped nearly 10% from last week and 27.5% over the past month.

Significant points include:

Price decline of 10% within 24 hours last Tuesday, raising concerns among investors.
On-chain data links SOL's drop to the problematic launch of LIBRA, which is under investigation.

Network Activity Decline

Active addresses on Solana fell from 18.5 million in November 2024 to 8.4 million, a 55% decrease. Total volume decreased drastically from $2 billion to $26 million, indicating a severe loss of momentum.

Future Challenges for SOL

In the next three months, around 15 million SOL tokens valued at $7 billion will be unlocked, potentially increasing market supply and selling pressure due to a 4.715% inflation rate.

SOL's current market capitalization is approximately $84 billion. Approval of spot SOL ETFs could offer some hope for recovery.

Meme Coin Dynamics

The rise of meme coins previously benefited SOL's price, but the number of new tokens minted has significantly declined. Recent launches like LIBRA and MELANIA have negatively impacted Solana's reputation.