- Solana (SOL) fell to $117, a 60% drop from its ATH of $293, driven by global trade tensions and Japan’s 2.265% bond yield surge, per CoinMarketCap.
- Over 74,698 traders lost millions in the LIBRA scandal on Solana, with 25 reporting over $1M in losses, eroding investor trust in the network.
Solana (SOL) has declined to $117, a 60% drop from its all-time high (ATH) of $293, according to ETHNews.
The cryptocurrency’s price now sits 20% below its level from a year ago, reflecting broader market turbulence and internal network challenges.
Global financial markets have faced pressure from geopolitical and macroeconomic factors. U.S. President Donald Trump’s March 4 announcement of tariffs—25% on Mexican and Canadian imports and 20% on Chinese goods—sparked trade-war fears. Though delayed until April, the policy’s uncertainty amplified investor caution.
Concurrently, Japan’s 20-year bond yield surged to 2.265%, its highest since 2008, reducing risk appetite as investors scaled back high-volatility assets like cryptocurrencies. A stronger yen further curbed carry trades, diminishing capital inflows into speculative markets.
Solana decline stems partly from token-related scandals
The January 2024 launch of TRUMP and MELANIA tokens briefly pushed SOL to its ATH but ended in sharp declines. TRUMP’s price peaked at $75 before dropping to $5, while MELANIA lost over 90% of its value by March. Both tokens were linked to Solana’s ecosystem, casting doubt on its governance and project quality.
A separate controversy involving LIBRA, a Solana-based token promoted by Argentine economist Javier Milei, exacerbated distrust. Over 74,698 traders reported losses, with 71,369 losing up to $10,000, 2,409 suffering $10,000–$50,000 losses, and 438 losing $50,000–$100,000.
Some 318 traders lost $100,000–$250,000, while 87 lost over $250,000, 52 exceeded $500,000 in losses, and 25 lost over $1 million.
Despite these setbacks, Solana faces potential regulatory opportunities. Bitwise, VanEck, and Grayscale have submitted applications to the U.S. Securities and Exchange Commission (SEC) for SOL-backed exchange-traded funds (ETFs). Such products could attract institutional capital, though past ETH ETFs have underperformed since their 2024 launch.
ETHNews analysts emphasize Solana’s need to shift focus from speculative tokens to sustainable projects. “The network’s recovery requires abandoning political and meme-driven assets,” noted researchers at The Token Dispatch. Without structural improvements, SOL’s price trajectory remains tied to macroeconomic risks and regulatory developments.
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