Solana (SOL) has been downtrending and retracing closely over the previous month. The asset has declined 40% since its Jan. 19 all-time excessive of $293, and the pattern appears set to proceed as meme coin mania fades. Furthermore, SOL is down an additional 8% on the day, falling under $170 for the primary time since early November.
Solana’s recognition and excessive utilization in current months have been primarily pushed by meme coin minting and hypothesis, however that has began falling.
Degens have flocked to the low-cost blockchain to mint and shill meme cash on platforms like Pump.enjoyable. The overwhelming majority of those spurious tokens haven’t any utility and serve no function, and a excessive share have been pump-and-dump schemes.
Sport Over For Solana?
“It’s over for Solana,” lamented crypto dealer ‘Xremlin’ who added it’s “Worse than the FTX collapse.”
The dealer blamed the MELANIA token, the namesake coin of the First Woman launched simply days after TRUMP, and LIBRA, a token allegedly promoted by Argentina’s president Javier Milei, which he has denied.
Insider buying and selling induced pump and dumps liquidating retail merchants, including to the autumn of Solana, the analyst stated.
“This previous month confirmed how unhealthy issues are on Solana’s meme scene. Largely, it’s insiders creating wealth whereas everybody else loses. Immediately, the SOL worth started responding to this sentiment.”
It’s over for Solana
Worse than the FTX collapse$LIBRA, #MELANIA modified every thing
: Right here’s what went down and what’s subsequent… pic.twitter.com/mo6TMBpift
— Xremlin (@0x_gremlin) February 17, 2025
In the meantime, crypto investor “Ash Crypto” stated we now know the true motive that Solana meme cash began dying. Insiders have been sniping these meme coin launches and promoting to dump on retail, he stated.
“Insiders have extracted $200+ Million from these Solana launches thus far.”
“Solana and SOL memes are dumping exhausting as a result of individuals are realizing this complete sport was rigged, and it was all simply wealth switch/worth extraction from crypto gamblers to venture insiders,” he stated in a separate put up.
Others posted some stunning statistics about how a lot has been extracted from Solana meme cash:
calculated the whole extracted from memes on solana:
– buying and selling bots & apps: 1.09bn
– pumpfun: 492m
– MEV: 1.5-2bn
– Trump insiders: 0.5-1bn
– Different insiders: unknown
– AMMs: 0-2bnWhole: 3.6-6.6+ bn
Sources within the subsequent tweet
— 0xngmi (@0xngmi) February 15, 2025
Ethereum Makes Shock Transfer
As if in response to the SOL hunch, ETH costs have bucked the market pattern, topping $2,830 in a 12-day excessive on Monday.
Nonetheless, market momentum was an excessive amount of for the asset to beat and ETH fell again under $2,700 once more throughout buying and selling in Asia on Tuesday.
Whole market cap is down 3% on the day at $3.27 trillion and SOL is the biggest loser within the high 40 crypto property – whereas Solana-based meme cash should not far behind.
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