- Solana’s price dropped 9.3%, reaching $166.
- Active addresses declined by 55%, and trading volume dropped significantly.
- Solana’s token unlock event may add selling pressure.
Solana’s price has fallen by 9.3%, reaching $166. The drop follows a massive selloff in Solana-based meme coins. The LIBRA token’s pump-and-dump event caused panic in the market. Traders rushed to exit, leading to a price correction.
Declining Network Activity Raises Concerns
Crypto analyst Ali Martinez highlighted alarming trends in activity on the Solana network. He noted that traders are shifting away from Solana. A decrease in usage could weaken Solana’s long-term prospects. Investors are now cautious, waiting for signs of recovery.
According to Ali, the Solana network experienced a significant drop in active addresses as their numbers decreased from 18.5 million in November to 8.4 million. The decline indicates users’ decreased commitment and integration.
Source: X
Additionally, the trading volume on Solana has also dropped significantly. It fell from $2 billion in November to $26 million today. The drop in activity is contributing to negative sentiment around Solana’s price.
Solana’s Price Struggles Below Key Levels
Since early 2025, Solana’s price has been under selling pressure. The price has dropped over $80 since its January peak. Analysts previously saw the movement as bullish consolidation. However, recent data suggests a weakening trend.
Crypto market analyst IncomeSharks noted a blow-off top. This pattern signals a loss of upward momentum. Solana’s price has lost support at $175. If the downtrend continues, it may fall further to $160. Any positive news about a spot Solana ETF could provide relief.
Futures Market and Liquidations Increase
Solana’s futures market is also under pressure. Trading volumes surged by 75% to $4.58 billion. Meanwhile, futures open interest dropped by 2.5% to $5.79 billion. This suggests reduced confidence among traders.
Liquidations have also risen sharply in the last 24 hours. Coinglass data shows $32.94 million in liquidations. Of this amount, $28.9 million came from long positions. Many traders expected a price recovery, leading to heavy losses.
Upcoming Token Unlock Event Adds Risk
Solana’s token unlock event on March 1 is raising concerns. Over 15 million SOL tokens will enter circulation by April. The increased supply could put further pressure on the price. Solana’s inflation rate is currently 4.715%.
Crypto trader RunnerXBT called this a dangerous time for investors. Large firms such as Galaxy and Pantera hold significant SOL positions. They could secure massive gains when the unlock happens. This event may increase selling pressure on Solana.
