Bitcoin (BTC) has suffered a major blow, dragging the entire market down with it.
The crypto markets are in complete turmoil, with stocks taking a deep dive into the red, crypto getting battered, and investor confidence hanging by a thread. Bitcoin, the heavyweight of the crypto world, has suffered a major blow, falling 12% in the past week and dragging the entire market down with it.
However, Solana (SOL) has taken an even bigger hit than Bitcoin, plunging 22% in the same period. The mood in the Solana camp is anything but upbeat as the altcoin continues to fall. After soaring to $293 in January, Solana hit a five-month low of $132 before clawing back to $144.
The biggest reason for this crash is the complete trainwreck that was the Libra ($LIBRA) memecoin, built on Solana. The coin shot up to an insane $5 billion market cap, only to come crashing down, losing 90% of its value within hours.
The collapse was so massive that it sparked fraud allegations and even demands to impeach Argentine President Javier Milei, who had publicly backed the coin. That scandal sent shockwaves through Solana’s ecosystem, and traders didn’t waste a second dumping their SOL holdings.
Moreover, the broader crypto scene isn’t helping, with the massive ByBit hack last week spooking investors. Trump’s fresh round of tariff talk isn’t making things any easier either.
While Bitcoin’s 12% drop is bad enough, Solana’s 22% decline is even worse, showcasing just how shakily the altcoin is standing.
Another problem is that the memecoin hype train is officially running out of steam. Solana became the go-to blockchain for meme tokens thanks to its cheap and fast transactions, especially with the rise of Pump.fun, a platform that made launching meme coins ridiculously easy.
At its peak, over 71,000 memecoins were launching daily. However, that number has since plummeted to just 26,000. As the memecoin party winds down, Solana’s network activity is taking a hit, and its price is feeling the heat.
With sentiment at rock bottom, all eyes are on Solana’s next move. Can it hold key support levels, or is there more pain ahead?
