- Solana’s price dropped to $153, marking a 9% decline in 24 hours and a 25% decrease over two weeks.
- The decline coincides with the Libra token controversy involving Argentina‘s President Milei and a cooling meme coin market.
- Major asset managers including Franklin Templeton have filed for Solana-based ETFs, with a 70% approval probability.
- Ethereum has shown better market resilience, declining 18% compared to Solana’s 38% drop.
- Market sentiment shifts from speculation to integrity as uncertainty increases in the cryptocurrency sector.
Solana’s native cryptocurrency experienced a sharp decline to its lowest point since October 2023, trading below $153 amid fallout from the Libra token controversy and diminishing enthusiasm in the meme coin sector. According to CoinGecko, the token recorded a 9% drop in the last 24 hours.
The sixth-largest digital asset, with a $75 billion market capitalization, faces pressure following the Libra token incident, which lost 90% of its value within hours. The controversy escalated when Argentine President Javier Milei, who had promoted the token, faced calls for impeachment after subsequently denying knowledge of the coin’s creation.
Despite market turbulence, institutional interest remains strong. Franklin Templeton joined other major asset managers, including Grayscale, Bitwise, Canary, 21Shares, and VanEck, in pursuing Solana-based ETF approval. Bloomberg analyst Eric Balchunas estimates a 70% chance of SEC approval for these funds.
Mark Connors, CIO at Risk Dimensions, attributes the decline to changing market dynamics: “The fallout from the Libra launch and confusion on who owns Kanye’s online [name, image, and likeness rights] accelerated a reversal in sentiment for the meme-based L1.” He noted that Ethereum has demonstrated greater resilience, declining 18% compared to Solana’s 38% drop.
The meme coin market, which previously drove significant activity on the Solana Blockchain, shows signs of cooling. While speculation continues around potential celebrity-backed tokens, including rapper Kanye West’s possible entry into the space, the sector’s momentum has notably decreased since the January launch of the Trump-themed token.
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