- Solana’s price dropped 45% from $290 to $160 between January and February 2025.
- Active addresses on Solana network decreased from 18.5 million to 8.4 million since October.
- The LIBRA token controversy in Argentina contributed to declining confidence in Solana-based projects.
- An upcoming March 1 token unlock will release 11.16 million new SOL tokens into circulation.
- Bitcoin‘s sideways trading between $94,000-$104,000 has negatively impacted alternative cryptocurrency prices.
Solana’s native cryptocurrency SOL has experienced a dramatic 45% price decline over the past month, falling from $290 to $160, as multiple market factors converged to create bearish pressure on the high-performance blockchain platform.
According to Coinbase data from TradingView, the sharp decline began after SOL reached its peak of approximately $290 on January 19, 2025, before tumbling to around $160 by February 18.
Aran Hawker, CEO of CoinPanel, attributes this decline to several concurrent factors, including diminishing enthusiasm for meme coins and significantly reduced network activity. Blockchain analytics data shared by analyst Ali (@Ali_charts) on X showed that active Solana addresses plummeted from over 18.5 million in October to below 8.4 million by mid-February.
The recent controversy surrounding the LIBRA token in Argentina has further damaged investor confidence. The project, which initially achieved a $4.5 billion market capitalization before losing 90% of its value, gained attention when Argentina’s President Javier Milei endorsed and subsequently retracted support for the project, as reported by CoinDesk.
Adding to the bearish sentiment is an upcoming token unlock scheduled for March 1, which will increase Solana’s circulating supply by Messari.io/token-unlocks”>11.16 million tokens. Joe DiPasquale, CEO of BitBull Capital, notes that institutional investors have been switching from SOL to ETH in anticipation of this event.
Cryptocurrency influencer Wendy O provides broader market context, pointing to Bitcoin’s sideways trading between $94,000 and $104,000 after reaching $109,000 in January 2025. This pattern has contributed to negative price action across alternative cryptocurrencies, with the LIBRA incident drawing comparisons to the market sentiment following the FTX collapse.
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