Declining by 9.3% today and falling to $166, Solana network decline pricing has been exhibiting against the rest of the cryptocurrency market. This occurs as Solana-based meme coin LIBRA encounters significant pump and dump, triggering a large selloff among all meme coins in this field. Moreover, on-chain data exposes a substantial decline in network activity, indicating traders are leaving.
Solana Network Activity plumets, Raising Concerns
Ali Martinez, a crypto specialist, has pointed to a notable decline in Solana network activity. From 18.5 million in November to just 8.4 million, Martinez claims that the number of active addresses has dropped by over 55%. This has also resulted in an unfavorable attitude toward the Solana price action.
Furthermore, the overall volume moved on the Solana network has dropped dramatically from $2 billion in November to just $26 million. Martinez notes that the extreme decline in both measures begs questions regarding the network’s present acceptance and utility compared to past activity levels.
Solana Price Drops Amid Bearish Market Sentiment
Solana has been in the hold of bears, shedding more than $80 since her peak in January last month, at the start of 2025. Although IncomeSharks traders have misinterpreted the Solana price movement as positive consolidation, it shows a “blow off top with a massive bear div showing momentum stalling.”
The present market movement has essentially erased SOL, which is at levels last seen in early January, negating gains achieved during the opening rise of the year. Given that the SOL price lost the vital support of $175, it could be corrected to the $160 level. Any encouraging improvement around the Solana ETF approval could act as a trigger ahead.
Press time finds the SOL price trading 9.28% down at $166.99, with daily trading volumes up by 75% to $4.58 billion. Moreover, the Coinglass data reveals that whereas the 24-hour liquidations have soared to $32.94 million, of which $28.9 million is in long liquidation, SOL’s future open interest has declined 2.5% to $5.79 billion.
Solana Faces Risk with Token Unlocking in March
Since token unlocking will start on March 1, market professionals have been counseling investors to avoid Solana (SOL). Solana expects a notable rise in its circulating supply throughout February, March, and April. Given a current token inflation rate of 4.715%, more than 15 million SOL tokens, valued at nearly $7 billion, will likely join the market throughout this period. This could help maintain Solana pricing under pressure in the future.
RunnerXBT, a bitcoin trader, has advised that this is a “dangerous” period to make Solana investments. Referring to the forthcoming token unlocking event, the trader noted that once the SOL unlocks occur, companies such as Galaxy, Pantera, and Figure stand to reap unrealized gains of $3 billion, $1 billion, and $150 million, respectively.
Thoughts on Final Notes
With a 55% decrease in network activity and a clear drop in transaction volume, Solana is confronting significant difficulties that raise questions regarding its acceptance and use. The current price drop, adverse market attitude, and an upcoming token unlocking in March may put more pressure on Solana’s price.
The market might show more volatility because more than 15 million SOL tokens will likely be used. Investors should exercise prudence while aware of the dangers of the forthcoming token unlock. In the near term, they should keenly monitor any developments, including possible positive catalysts like ETF approval.
