Solana’s (SOL-USD) total value locked (TVL) has plummeted 40% in just 30 days, marking its worst monthly decline since the FTX collapse, according to DefiLlama. The network’s TVL has fallen from a peak of $12.1 billion on Jan. 24 to $7.4 billion. This signals that investors are pulling liquidity and stepping back from DeFi projects. Major protocols like Raydium, Jupiter DEX, and Jito liquid staking have all suffered double-digit losses in locked funds.
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Memecoin Frenzy Cools Off, Wiping Out Billions
The memecoin market on Solana has crashed nearly 70%, with valuations tumbling from $25 billion in December 2024 to just $8.3 billion today, according to DefiLlama. Many Solana-based meme tokens are down 80-90% from their peaks, and daily DEX trading volume has plunged from $22.1 billion on Jan. 19 to just $1.6 billion. This mass exodus from memecoins has severely impacted Solana’s network activity and demand for SOL.
Analysts See $110 SOL as Key Level
From a technical perspective, Solana’s price has formed a bearish double-top pattern, with key support at $135. Analysts warn that losing this level could send SOL tumbling another 20% to $110, according to crypto analyst Gum. However, the RSI suggests oversold conditions, meaning a bounce could be on the table if demand picks up at these levels.
At the time of writing, Solana is sitting at $138.60.
