Why Is Solana Price Down 9.3% Today?

Solana price has been showing against the rest of the crypto market dropping another 9.3% today and moving to $166. This happened as Solana-based meme coin LIBRA faces massive pump and dump triggering a massive selloff across all meme coins in this sector. Furthermore, on-chain data reveals a strong drop in the network activity showing that traders are moving away.

Solana Price Under Pressure as Network Activity Plummets

Crypto analyst Ali Martinez has highlighted a significant downturn in activity on the Solana network. According to Martinez, the number of active addresses has plummeted from 18.5 million in November to just 8.4 million as of today—a decline of nearly 55%. This has further led to a negative sentiment around the Solana price action.

Additionally, the total volume transferred on the Solana network has seen a drastic reduction, falling from $2 billion in November to a mere $26 million. The stark drop in both metrics raises concerns about the network’s current adoption and utility, marking a sharp contrast to its previous activity levels, noted Martinez.

SOL Action Moving Ahead

Since the beginning of 2025, Solana has been in the grip of bears shedding more than $80 since its peak in January last month. Crypto market analyst IncomeSharks traders have mistaken the Solana price action as bullish consolidation instead it represents a “blow off top with a massive bear div showing momentum stalling.”

The current price action places SOL at levels last seen in early January, effectively erasing gains made during the year’s opening rally. With the SOL price losing the crucial support of $175, it could correct further down to $160 level. Any positive development around the spot Solana ETF approval could serve as a catalyst ahead.

As of press time, the SOL price is trading 9.28% down at $166.99 with daily trading volumes surging by 75% to $4.58 billion. Furthermore, the Coinglass data shows that SOL futures open interest have dropped 2.5% to $5.79 billion while the 24-hour liquidations have surged to $32.94 million of which $28.9 million is in long liquidation.

Negative Sentiment Around SOL Unlocking Peaks

Market analysts have been advising investors to stay away from Solana (SOL) for a while amid the token unlocking coming on March 1. Solana is set to see a significant increase in its circulating supply over the next three months (February, March, and April). With a current token inflation rate of 4.715%, more than 15 million SOL tokens—valued at over $7 billion—are expected to enter the market during this period. This could keep Solana price under pressure moving ahead.

Crypto trader RunnerXBT has cautioned that this is a “dangerous” time to invest in Solana. Referring to the upcoming token unlock event, the trader pointed out that firms such as Galaxy, Pantera, and Figure stand to secure unrealized gains of $3 billion, $1 billion, and $150 million, respectively, once the SOL unlock takes place.