Solana FUD is peaking yet again after its historic two-year run that saw it hit an all-time high (ATH) of $294 just one month ago.
TL;DR
- Solana falls 19% to $135, TVL drops to $7.3 billion
- Solana’s network activity experiences a 40% drop
- Raydium tanks 40% on Pump.fun’s AMM rumors
- Wintermute sparks selling pressure fears
- Hackers steal over $1.4 billion from Bybit
Introduction
Solana FUD is peaking yet again after its historic two-year run that saw it hit an all-time high (ATH) of $294 just one month ago.
This week, SOL plummeted 19% to $135, and we’re hearing more and more calls that capitulation is near, as the feared March 1 unlock of 11.2 million FTX $SOL tokens approaches. Now would be a good time for that ETF to get approved!
But it's not only Solana that’s suffering. The whole crypto market is feeling the pain as the post-inauguration blues continue. The market lost $100 billion in just an hour, with Bitcoin losing the critical $90K support, briefly dipping under the $87K mark.
CoinMarketCap’s Fear and Greed index now stands at 29, the lowest in quite a while. While there's no clear trigger for the overall crash, the Bybit hack—the largest in history—might be to blame, with North Korea's Lazarus Group snatching $1.4 billion. It particularly casts a dark shadow over Ethereum, with some estimates finding that 4% of ETH in circulation might be held by the terrorist organization.
Back on Solana, network activity dipped 40%, and Raydium (RAY) is under massive selling pressure amid rumors of a new automated market maker (AMM) launch from Pump.fun.
Here is your weekly recap of all things Solana. If you’re having a bad week, look away now!
Solana Numbers the Last 7 Days
Source: CoinMarketCap
- Price: $135, down 19%
- Market cap: $68.46 billion
- DeFi TVL: $7.296 billion
- Daily active addresses: >4.1 million
- 24H trading volume: $8.74 billion
Solana's slump persists, dropping another 19% and hitting its lowest point since October. The network activity nosedived after the LIBRA meme coin scandal cost investors billions and implicated key service providers like Jupiter and Meteora. Will the SEC’s Cyber and Emerging Technologies Unit protect retail investors from crypto fraud and other crimes?
The slide extends to the total value locked (TVL) which fell to $7.3 billion while the number of active addresses tumbled to 4.1 million.
Source: Artemis
The DEX trading volume has been hit hard of late, dropping 31% to $17.25 billion.
Source: DeFiLlama
Raydium trading volume suffered a 29% decline in trading volume as rumors swirl that Pump.fun is testing its own AMM. Pump.fun's native AMM liquidity pools could eat Raydium's lunch as Pump.fun tokens with enough liquidity graduate to Raydium.
Source: DeFiLlama
How Did Solana Stack Up Against Its Competitors?
There are no sacred cows this week as Solana's competitors are feeling the burn too. Bitcoin fell 8% to trade below $89,000. Ethereum, BNB, and XRP also recorded tangible losses.
The market is on shaky ground.
Source: CoinMarketCap
Despite having a tough week, Solana's 24-hour app revenue ($5.05 million) outpaced Ethereum, Tron, and Arbitrum combined. Strong numbers in a tough market!
Source: DeFiLlama
Solana Ecosystem the Last Week
Solana's ecosystem tokens are struggling, resulting in the market cap tanking 7% to $678 billion. The trading volume is up 65%.
Source: CoinMarketCap
Solana’s ecosystem tokens are bleeding, and Raydium (RAY) is holding the sharp end of the stick with a 40% loss.
Source: CoinMarketCap
Top Gainers:
- Grass (GRASS): +8.91%
- Convex Finance (CVX): +2.16%
Top Losers:
- Raydium (RAY): -40.1%
- Lido DAO (LDO): -24.46%
- Aave (AAVE): - 21.12%
- Uniswap (UNI): -18.29%
- Chainlink (LINK): -18.08%
Solana DeFi
Solana's TVL took a 13% dive, dropping to $7.2 billion and giving rivals an opportunity to catch up. Berachain was a big winner, increasing its TVL by nearly 12%, reaching $3.37 billion.
Source: DeFiLlama
Ethereum maintains its lead in the DeFi sector with more than half of the market share. Solana still takes the second place, although it has a slender lead over Bitcoin in third place.
BSC, Tron, and Berachain are hot on each other's heels, rounding off the top six.
Source: DeFiLlama
Solana Meme Coins
Things have gotten so bad in Meme Coin Land that even Toly this week called out KOLs who launch and then dump coins on retail.
- This week, Fwog (FWOG) stole the spotlight, soaring 80%, while most of Solana's meme coins took a hit with double-digit losses. A wild ride for the meme coin scene!
Source: CoinMarketCap
Top Gainers:
- Fwog (FWOG): +79.89%
- Michi (MICHI):+32.95%
- Mumu the Bull (MUMU): +9.13%
- Peanut the Squirrel (PNUT): +6.25%
Top Losers:
- Bopaoppa (BOPAOPPA): - 27.76%
- Official Melania Meme (MELANIA): -25.63%
- Gigachad (GIGA): -24.86%
- SLERF (SLERF): -22.72%
- Smoking Chicken Fish (SCF): -21.61%
Solana DePIN
Source: DePIN Scan
- For the second week straight, Grass (GRASS) is in the money while the majority of Solana’s DePIN tokens see red.
NFTs
- Solana boosted its NFT share to 26%, but still trails Polygon, which holds 30.9%.
- Ethereum rounds out the top three with 21%. Can Solana catch up?
Source: NFT Pulse
Top 5 Solana News Stories
Wintermute Pulls $38M SOL Ahead of Solana Unlock
Wintermute withdrew $38 million in SOL from Binance, just ahead of Solana’s $2 billion token unlock. The move raises concerns about potential selling pressure as market sentiment weakens.
Raydium Dips Amid Pump.fun AMM Rumors
Raydium's RAY token plunged 40% this week after rumors surfaced that Pump.fun is testing its own AMM, potentially cutting into Raydium’s revenue stream. If true, the new feature could shift trading volume away from the DEX.
Solana Faces 40% Drop in User Activity
Solana saw a 40% drop in user activity as meme coin scams and rug pulls erode trust, leading to capital moving to Ethereum and Arbitrum.
Time.fun Launches on Solana After Base Debut
Time.fun, a platform allowing users to purchase and trade influencer time, has officially launched on Solana after a successful trial on Base.
Bybit Loses $1.4B in ETH Hack
The Lazarus Group is suspected of hacking Bybit and making off with over $1.4 billion in Ethereum and related tokens. The stolen funds are already being laundered.
According to on-chain investigator ZachXBT, the Lazarus Group may be connected to recent Solana meme coin scams, including rug pulls on the Pump.fun platform.
What You Can Do Now
- Monitor your SOL bags—Wintermute's moves may spark selling pressure.
- Watch your RAY holdings as it's down over 40%.
- Track Solana’s ecosystem as network activity dips.
- Try Time.fun, but be aware of the risks to your money and security.
- Learn from the Bybit hack—secure your assets in cold storage and avoid putting all your eggs in one basket.
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