In a dramatic turn, Solana (SOL) plunged below the crucial $100 mark in the past 24 hours, sending shockwaves through the crypto market. The drop—over 15% in just one day—briefly pushed SOL to a low of $96 before it rebounded slightly to hover around $101, according to data from CryptoSlate.
This marks Solana’s lowest price in 14 months, as broader market volatility and macroeconomic fears fuel investor anxiety. CoinGlass reported that the sharp decline wiped out nearly $71 million in leveraged positions, reflecting the intense sell pressure that gripped the asset.
Global Trade Tensions Spook Markets
Analysts are pointing fingers at growing global trade disputes and renewed tariff tensions, which have spurred risk-off sentiment among investors. The fear of an impending economic slowdown has been weighing heavily on both traditional and digital markets, leading to widespread red across major crypto assets.
Solana’s On-Chain Metrics Signal Trouble
Adding to the bearish mood is Solana’s declining on-chain performance. According to VanEck’s latest research, March saw a massive drop in Solana network activity:
66% fall in average transaction fees34% drop in stablecoin transfer volume53% decrease in DEX trading activity
VanEck also highlighted a significant loss in DEX market share for Solana, which recently fell to its lowest point since October 2024. This comes just months after the network briefly outpaced Ethereum in DEX trading volume.
The Rise and Fall of Memecoin Mania
One major factor behind Solana’s decline is the cooling hype around memecoins. Daily memecoin volumes on Solana peaked at a staggering $12 billion earlier this year but have since plummeted to just $720 million by March.
Despite this, memecoins still accounted for 92% of Solana’s total DEX volume last month (excluding SOL and stablecoins), underlining how heavily the network’s activity leans on speculative assets.
Institutional Eyes Still on Solana
While retail sentiment may be waning, institutional interest is quietly growing. The Chicago Mercantile Exchange (CME) recently introduced SOL futures contracts, and Volatility Shares followed up with the first-ever SOL futures ETF.
These developments suggest mounting institutional confidence and could potentially lay the groundwork for spot-based Solana ETFs, a move that might reshape the token’s future trajectory.
PayPal Steps In
Adding fuel to Solana’s long-term narrative is PayPal’s recent integration of SOL into its crypto offerings. U.S. users can now buy, sell, and transfer Solana through both the PayPal platform and Venmo, signaling rising mainstream adoption despite recent price action.
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