Solana has dropped to $169.01, its lowest price since mid-December, following a series of meme coin scandals and a looming token unlock event.
Solana Crashes Amid LIBRA Controversy
Solana (SOL) is down 8.8% in the last 24 hours, a 16.5% drop for the week, and a 39.1% decline over the past month, according to CoinGecko.
The latest crash comes after the LIBRA meme coin scandal, which involved Argentine President Javier Milei.
LIBRA, a Solana-based token, surged past $4 billion in market value before crashing nearly 90% in hours.
Milei initially endorsed the project but later deleted his promotional post, leading to fraud charges against him.
More Solana Meme Coin Chaos
LIBRA is not the only meme coin causing instability for Solana.
- Harry Bolz (HARRYBOLZ) jumped 54,637% after Elon Musk briefly changed his X (formerly Twitter) name to match it, before crashing.
- Vigilante (VIGI) surged but fell 69% in hours after a stunt where a man climbed the Hollywood sign to promote the coin.
Upcoming Token Unlock Could Add More Pressure
Beyond meme coin chaos, Solana faces another challenge. On March 1, 11.2 million SOL tokens worth $2.06 billion will be unlocked due to FTX estate auctions.
Investors who bought these tokens at lower prices may start selling, increasing pressure on SOL’s price.
Long-Term Outlook Still Positive?
Despite recent struggles, some analysts remain bullish. Asset manager VanEck predicts that SOL could reach $520 by the end of 2025, citing its growing market share in smart contracts and decentralized exchanges (DEXs).
For now, Solana investors are bracing for more volatility as the market reacts to the latest developments.
