Commercial activity continues downward today as Solana suffered a 9.3% price reduction to stop at $166 while the market experiences a major selling wave. The price decline occurred while the Solana-based meme coin LIBRA experienced an enormous market manipulation scheme which created widespread panic within the sector. Solana’s reduced network activity appears through on-chain information and suggests potential challenges for its upcoming performance.
Solana Faces Declining Network Activity
Crypto analyst Ali Martinez identifies an enormous decrease in Solana’s active wallet addresses according to her data. The decrease in active wallets starting from November 2022 shows a drop of 55% from 18.5 million to 8.4 million. The bearish sentiment regarding Solana price stems from traders who seem to be abandoning the network based on these recent adjustments.
The Solana network transaction volume has experienced a severe decrease since its peak. The November transaction volume of $2 billion has dramatically declined to reach only $26 million in current times. The sharp decline in network adoption metrics along with reduced transaction numbers indicates that Solana has become less attractive than in past months as noted by Ali Martinez.
SOL Price Action and Market Trends
The price of Solana declined more than $80 since the beginning of 2025 after reaching its top value in January. The market research firm IncomeSharks attributed the incorrect bullish analysis of Solana price trends to trading misinterpretations. Traders interpret this price movement as an “explosive peak followed by an enormous bearish signal” which indicates momentum loss.
The fall of Solana below the essential $175 support level indicates that analysts predict additional price declines. SOL prices may reach $160 under present bearish market conditions. The future approval process of a spot Solana ETF might serve as an important growth trigger for Solana markets.
The current SOL price stands at $166.99 showing a 9.28% decline in daily value. Higher market activity is reflected through the astonishing 75% increase in trading volumes which now reach $4.58 billion. Open interest for Solana futures on Coinglass decreased by 2.5% to $5.79 billion and long position liquidations rose to $32.94 million within the last 24 hours totaling $28.9 million.
Upcoming Token Unlock Raises Concerns
Solana will see its circulating supply increase significantly throughout the next three months. The market will receive an influx of SOL tokens exceeding 15 million tokens which are worth more than $7 billion between February and April. The current inflation rate stands at 4.715% so the expected large supply injection may urge prices to fall even more.
Crypto trader RunnerXBT warned investors that the upcoming SOL token release poses significant market threats to the cryptocurrency. When the unlock takes place Galaxy, Pantera, and Figure may record substantial unrealized gain increases through which they will continue to sell their SOL tokens.
What’s Next for Solana?
The current market sentiment indicates bearishness because Solana’s prices are decreasing while network usage declines and token unlocks approach. The price direction of Solana might change based on critical institutional uptake or regulatory acceptance.
The market waits to observe if SOL can establish new support ranges or if more negative price movements will persist.
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