- Solana experienced nearly $485 million in capital outflows during the past month as investors sought safer crypto assets.
- Bitcoin dominance increased to 59.6% as market participants demonstrated a “flight to safety” amid declining overall crypto market capitalization.
- Stablecoins and real-world assets (RWAs) reached all-time high values as investors prioritized stability during market uncertainty.
Investor capital is rapidly exiting the Solana ecosystem, with over $485 million flowing out in the past 30 days, primarily redirecting toward Ethereum, Arbitrum, and BNB Chain, according to a new Binance Research report. This massive capital migration reflects growing uncertainty and a broader shift toward perceived safety in cryptocurrency markets.
The exodus from Solana coincides with a 20% drop in total cryptocurrency market capitalization during February, driven by deteriorating investor sentiment. The report, shared with Cointelegraph, highlighted Bitcoin’s increasing market dominance, which rose by 1% to reach 59.6% over the past month.
“Overall, there is a broader flight towards safety in crypto markets, with Bitcoin dominance increasing 1% in the past month to 59.6%,” the Binance Research report stated.
Several factors contributed to the negative market sentiment, including macroeconomic concerns and the $1.4 billion Bybit hack on February 21—the largest exploit in cryptocurrency history. Additionally, disappointing Solana-based memecoin launches dampened investor enthusiasm, particularly following the Libra token debacle.
The Libra token, which had received endorsement from Argentine President Javier Milei, collapsed spectacularly when project insiders allegedly extracted over $107 million in liquidity through a rug pull. This triggered a 94% price plunge within hours, eliminating approximately $4 billion in investor capital.
“Memecoins have evolved from community-driven social experiments into a chaotic landscape dominated by value extraction from retail investors,” explained Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum. “Insider rings, pump-and-dump schemes, and sniper groups have replaced the organic, collectible nature of original memecoins, creating an unhealthy playing field.”
Some Solana-based capital found its way to the BNB Chain memecoin market, “driven in part by CZ’s tweets about his dog, Brocolli,” according to the report.
## Stablecoins and RWAs Reach Record Highs
Against this backdrop of market turbulence, stablecoins and real-world assets (RWAs) have surged to unprecedented levels. The combined stablecoin market cap exceeded $224 billion, while on-chain RWAs reached a cumulative all-time high of $17.1 billion distributed among 82,000 asset holders, as previously reported.
Binance Research attributed this capital rotation directly to market conditions: “Influenced by macroeconomic factors such as escalating trade tensions and diminished expectations of interest rate cuts, the crypto market has had a rough February. In such an environment, investors may choose to take chips off the table and hold stablecoins as an alternative.”
The continuing uncertainty in global risk assets could potentially drive RWA valuations to $50 billion by 2025, according to Alexander Loktev, chief revenue officer at P2P.org, an institutional staking and crypto infrastructure provider.
Simultaneously, user activity on Solana has declined by 40% as memecoin rug pulls have eroded trust in the ecosystem. There are also indications that Bybit hackers may be connected to Solana memecoin scams, according to investigations from crypto sleuth ZachXBT.
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