Solana, once celebrated as one of the most promising blockchain projects in the crypto space, is currently grappling with a significant downturn. The digital asset’s trading volume has plummeted by a staggering 99%, raising concern among investors. From a peak of $1.99 billion in November 2024, Solana’s volume has dropped to just $14.57 million as of February 2025. This decline has been accompanied by a sharp 15.56% price drop in a single day, adding to an already challenging situation for the cryptocurrency. As the digital asset faces this steep decline, many are questioning whether it’s time to buy or if further losses are inevitable.
The recent market sell-off, fueled by tariff-driven concerns, has hit Solana particularly hard. The cryptocurrency has fallen below its pre-election levels, breaching the important $150 support threshold. Among high-cap cryptocurrencies, Solana has led the decline with an almost 20% decrease in value over the past week. But it’s not just the price that’s concerning; on-chain transfer volume, which serves as a key indicator of network activity, has collapsed to a mere $14.5 million – down an alarming 99% from the peak seen just months ago.
With these figures, many are asking: is Solana heading for an even deeper correction, or is this merely a temporary dip? For Solana, the next few days will prove critical in determining its trajectory.
The current price point of Solana stands at $139.70, leaving the cryptocurrency at a pivotal juncture. A successful defense of this level could mark a crucial turning point. If Solana can flip this resistance level into a solid support zone, it could help restore some market confidence. However, failure to do so might trigger further losses, pushing long-term holders (LTHs) to sell their positions, thereby accelerating the downtrend.
Since reaching an all-time high of $295.83 in late 2024, following a surge driven by a meme coin frenzy, Solana has struggled to find solid ground. Despite multiple attempts, it has been unable to establish a strong support base, which has left it vulnerable to sharp declines. As noted by crypto analyst Ali Martinez, the significant drop in Solana’s trading volume only adds to the bearish sentiment surrounding the asset. The lack of liquidity and the 99% reduction in on-chain transfer volume leave many wondering if Solana can weather this storm.
Another major concern for Solana is the current state of its liquidity. The blockchain’s Total Value Locked (TVL), which measures the amount of capital invested in decentralized finance (DeFi) projects on the network, has suffered a massive drop, shedding nearly $1 billion in value. This sharp reduction in TVL means there is less capital circulating within Solana’s ecosystem, which adds to the difficulty of staging a sustained recovery.
Despite the challenges, the current market conditions might also present a unique opportunity. Solana’s decline has shaken out many “weak hands,” those investors who panic-sell at the first sign of trouble. With these investors no longer in the market, the stage could be set for stronger accumulation, which may ultimately help Solana recover. However, for that to happen, a significant shift in market sentiment is required.
For Solana to rebound, strong accumulation is necessary. This means that long-term investors, or those with deep pockets, need to step in and absorb the excess liquidity that has built up. Only then can Solana hope to trigger a supply shock that would help drive prices higher. Without strong buying support, the asset may struggle to gain any meaningful momentum.
On-chain volume metrics provide a glimpse of hope for Solana. After a sharp drop in transfer volume, there has been a slight uptick, with some analysts noting a double-digit increase to $5.28 billion. While this surge is encouraging, it is too early to tell whether this is the beginning of a trend reversal or just a short-term blip in an otherwise bearish market.
At this point, it’s clear that the next few days will be crucial for Solana. The crypto community is watching closely to see whether buying momentum can hold and push the asset into a sustained upward trend. If buyers fail to step in and support Solana’s price, then this current phase could become a short-term profit-taking opportunity for traders, rather than a long-term accumulation phase.
As the blockchain world continues to evolve, Solana’s ability to recover will depend heavily on how well it can recover its trading volume and attract new investment. With its market cap shrinking by nearly $40 billion this month alone, Solana’s journey to regain investor confidence is far from certain. However, if strong accumulation occurs and buying momentum picks up, Solana could potentially reclaim its place as one of the most valuable blockchain assets in the market.
The road to recovery for Solana is fraught with challenges, but it’s not impossible. The blockchain’s ability to weather this storm and regain market confidence will largely depend on whether it can successfully hold key support levels and induce a supply shock by absorbing excess liquidity. As the next few days unfold, traders and investors alike will be watching closely to see if Solana can turn this difficult period into a foundation for future growth.
For now, the future of Solana hangs in the balance. Will strong accumulation lead to a successful trend reversal, or will the asset face further declines? Only time will tell, but for now, all eyes are on Solana as it faces its biggest challenge yet.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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