Solana Prices Plummet Below $150 Amidst Bearish Market Forces

NEW YORK, NY — Solana‘s price experienced a dramatic decline on February 24, 2025, landing below $150 for the first time this year. The digital currency, which serves as the native asset for a high-performance blockchain platform, hit a low of $137.77 around 6 p.m. EST, marking a nearly 20% drop in just 24 hours following a recent surge to nearly $170.

Analysts have attributed this significant downturn to a series of negative developments impacting investor confidence. Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, highlighted an impending token unlock scheduled for March 1, which will release approximately 11.2 million SOL tokens into the market. “This anticipated increase in supply may be prompting the market to sell preemptively, fearing dilution and downward pressure on SOL’s value,” DiPasquale stated.

This unlock is related to ongoing bankruptcy proceedings of the failed FTX exchange, which collapsed in late 2022, and will continue to exert pressure with smaller unlocks planned for April and May. The potential influx of tokens has spooked some investors.

Market observers have noted a significant decline in network activity, reflecting a broader trend of reduced engagement within the Solana ecosystem. “On-chain evidence suggests a drop in active daily addresses from 5.7 million to 3.5 million within the last four weeks,” explained Armando Aguilar, an independent cryptocurrency analyst. He added that trading volumes on decentralized exchanges (DEXs) have similarly plummeted, with fees falling drastically on platforms like Raydium.

Additional troubling statistics include a shocking slide for Solana’s stablecoin transfer volumes, which dropped from approximately $395 billion to just over $7 billion. Meanwhile, revenue generated by Solana applications fell from a peak of $58.4 million to a mere $4.5 million.

DiPasquale pointed out that the overall cryptocurrency market is also facing challenges, noting that seven out of the top ten cryptocurrencies, including major stablecoins like USDC and Tether, were down in value at the time of report. “The broader downturn in the cryptocurrency market and negative funding rates — which indicate a surge in short positions against SOL — have certainly added to the pressure,” he said.

Adding to Solana’s woes are recent high-profile incidents affecting investor confidence, including scams linked to tokens launched on the Solana network. Alex Lin, cofounder and general partner at a venture capital firm, elaborated, “Specific events impacting Solana’s ecosystem and high-profile scams have led to declining trust among users. For instance, the $LIBRA coin witnessed a catastrophic drop from a $4.6 billion market cap to less than $100 million, draining liquidity from the network.”

Market analysts are now scrutinizing Solana’s technical levels. Wendy O, a cryptocurrency influencer, mentioned via email that it has officially fallen below a critical support threshold of $154. “If the lower support levels in the high $130s are broken, we could see declines down to $118-122,” she noted.

Tim Enneking, managing partner of a digital asset investment firm, raised concerns about whether the price would hold at $100, considering the array of bearish factors currently at play.

Despite the gloomy sentiment, there appears to be cautious optimism among long-term investors. A recent survey indicated that a significant portion of FTX creditors intend to reinvest their recoveries into cryptocurrencies, particularly Solana. Notably, 44% of creditors expressed confidence in the platform, while 71% declared intentions to purchase more SOL if prices dip below $145.

In conclusion, while the near-term outlook for Solana remains precarious amidst a turbulent market, signs of potential recovery may emerge from the upcoming institutional developments and shifts in investor sentiment.