Following Ethereum, Solana has also fallen victim to market FUD (Fear, Uncertainty, and Doubt). If we were to discuss the most dazzling public blockchain in this bull run, Solana—nicknamed the "data center chain"—would undoubtedly take the crown. The heavy blow from FTX's collapse became the fertile ground for Solana's rebirth. With its outstanding performance and precise positioning, SOL rode the MEME wave to create a rare growth miracle, rising from $8 to a peak of over $290, leaving the market in awe. Active participants, funds, and projects formed a vibrant ecosystem, with the slogan of surpassing Ethereum frequently mentioned in discussions about Solana.

However, recently, the "Retail King" has not been performing well. In the past month alone, SOL's price has plummeted from a high of $295.83 to the current $169, with a maximum decline of over 45%, nearly halving in value. This contrasts sharply with the fading enthusiasm for MEMEs, the influx of unlocked tokens, and the bustling crowds at SOL's conference booths.

This situation inevitably raises the question: Is Solana still viable?

From a price perspective, Solana's recent downturn is primarily driven by two factors: MEME coins and token unlocks. Previously, SOL leveraged MEMEs to turn itself into a major on-chain gambling hub. However, the recent underperformance of MEMEs has been disappointing. The root cause lies in the surge of celebrity coins, such as Trump Coin, Melania Coin, and LIBRA, which are closely related to the Argentine President. These influential figures have exploited their clout to profit from an already liquidity-strapped market.

For example, Trump Coin has seen a 76% drop from its peak, with 800,000 investors left stranded at the top. Melania Coin has plummeted by 90%, while the less influential LIBRA has dropped by 92%, nearly reaching zero. The low barriers to token issuance and the choice of these celebrities to create their own MEMEs rather than using Bitcoin or Ethereum have shattered market confidence in liquidity injections.

Token unlocks have also become a significant burden for SOL. In February to April 2025, over 15 million SOL tokens, valued at more than $7 billion, will enter circulation. On March 1 alone, 11.2 million SOL tokens, worth approximately $2.06 billion, will be unlocked. These tokens were originally part of FTX's liquidation auctions following its bankruptcy, with major buyers including Galaxy Digital and Pantera.

The decline in Solana's price has been exacerbated by market sentiment and trading dynamics. The number of active addresses on Solana has significantly dropped from 18.5 million in November 2023 to 8.4 million currently, a decline of 54.6%. With fewer participants, the demand for SOL has naturally weakened.

Moreover, the upcoming token unlocks have created a sense of unease among investors, leading to increased selling pressure. According to data from Dune Analytics, Solana's on-chain activity has also declined sharply, with daily transactions dropping from an all-time high of 71,738 on January 23 to just 9,303 on February 17. This decline in activity has further dampened demand for SOL.

Despite the recent challenges, Solana still holds significant potential in the long run. Its ecosystem remains robust, with a wide range of applications across payment, DeFi, LSD, MEME, gaming, NFT, and DePIN sectors. Solana's TVL (Total Value Locked) reached $8.24 billion, making it the second-largest public blockchain in terms of TVL, although it still lags behind Ethereum's $57.3 billion.

However, the upcoming token unlocks and the ongoing decline in MEME-related activities pose short-term risks to Solana's price. While some analysts remain optimistic about Solana's long-term prospects, predicting a potential price recovery to $295, the short-term outlook remains uncertain.

Solana's 40% decline in January is a result of multiple factors, including the fading enthusiasm for MEMEs and the upcoming token unlocks. While the ecosystem remains strong, the short-term market sentiment and trading dynamics have led to significant price pressure. Whether Solana can recover in the near future will depend on its ability to navigate these challenges and regain investor confidence.

Following Ethereum, Solana has also fallen victim to market FUD (Fear, Uncertainty, and Doubt). If we were to discuss the most dazzling public blockchain in this bull run, Solana—nicknamed the "data center chain"—would undoubtedly take the crown. The heavy blow from FTX's collapse became the fertile ground for Solana's rebirth. With its outstanding performance and precise positioning, SOL rode the MEME wave to create a rare growth miracle, rising from $8 to a peak of over $290, leaving the market in awe. Active participants, funds, and projects formed a vibrant ecosystem, with the slogan of surpassing Ethereum frequently mentioned in discussions about Solana.

However, recently, the "Retail King" has not been performing well. In the past month alone, SOL's price has plummeted from a high of $295.83 to the current $169, with a maximum decline of over 45%, nearly halving in value. This contrasts sharply with the fading enthusiasm for MEMEs, the influx of unlocked tokens, and the bustling crowds at SOL's conference booths.

This situation inevitably raises the question: Is Solana still viable?

From a price perspective, Solana's recent downturn is primarily driven by two factors: MEME coins and token unlocks. Previously, SOL leveraged MEMEs to turn itself into a major on-chain gambling hub. However, the recent underperformance of MEMEs has been disappointing. The root cause lies in the surge of celebrity coins, such as Trump Coin, Melania Coin, and LIBRA, which are closely related to the Argentine President. These influential figures have exploited their clout to profit from an already liquidity-strapped market.

For example, Trump Coin has seen a 76% drop from its peak, with 800,000 investors left stranded at the top. Melania Coin has plummeted by 90%, while the less influential LIBRA has dropped by 92%, nearly reaching zero. The low barriers to token issuance and the choice of these celebrities to create their own MEMEs rather than using Bitcoin or Ethereum have shattered market confidence in liquidity injections.

Token unlocks have also become a significant burden for SOL. In February to April 2025, over 15 million SOL tokens, valued at more than $7 billion, will enter circulation. On March 1 alone, 11.2 million SOL tokens, worth approximately $2.06 billion, will be unlocked. These tokens were originally part of FTX's liquidation auctions following its bankruptcy, with major buyers including Galaxy Digital and Pantera.

The decline in Solana's price has been exacerbated by market sentiment and trading dynamics. The number of active addresses on Solana has significantly dropped from 18.5 million in November 2023 to 8.4 million currently, a decline of 54.6%. With fewer participants, the demand for SOL has naturally weakened.

Moreover, the upcoming token unlocks have created a sense of unease among investors, leading to increased selling pressure. According to data from Dune Analytics, Solana's on-chain activity has also declined sharply, with daily transactions dropping from an all-time high of 71,738 on January 23 to just 9,303 on February 17. This decline in activity has further dampened demand for SOL.

Despite the recent challenges, Solana still holds significant potential in the long run. Its ecosystem remains robust, with a wide range of applications across payment, DeFi, LSD, MEME, gaming, NFT, and DePIN sectors. Solana's TVL (Total Value Locked) reached $8.24 billion, making it the second-largest public blockchain in terms of TVL, although it still lags behind Ethereum's $57.3 billion.

However, the upcoming token unlocks and the ongoing decline in MEME-related activities pose short-term risks to Solana's price. While some analysts remain optimistic about Solana's long-term prospects, predicting a potential price recovery to $295, the short-term outlook remains uncertain.

Solana's 40% decline in January is a result of multiple factors, including the fading enthusiasm for MEMEs and the upcoming token unlocks. While the ecosystem remains strong, the short-term market sentiment and trading dynamics have led to significant price pressure. Whether Solana can recover in the near future will depend on its ability to navigate these challenges and regain investor confidence.