Tue Feb 25 07:20:00 UTC 2025: ## Solana Plunges 20% in 24 Hours, Hitting 2025 Low Amidst Token Unlocks and Market Downturn

**NEW YORK, February 25, 2025** – Solana (SOL), the native token of the Solana blockchain, experienced a dramatic 20% price drop in less than 24 hours on Monday, reaching its lowest point of 2025 at $137.77. The cryptocurrency, which briefly touched nearly $170 the previous day, plummeted below the $150 mark, triggering concern among investors.

Analysts attribute the sharp decline to a confluence of factors. A significant upcoming token unlock on March 1st, releasing approximately 11.2 million SOL tokens related to the FTX bankruptcy proceedings, is expected to increase selling pressure. Further unlocks are scheduled for April and May, adding to the anticipated downward pressure.

Beyond the token unlocks, the Solana network has witnessed a concerning drop in activity. Data reveals a significant decline in active daily addresses, impacting decentralized exchange (DEX) volumes and transaction fees. Furthermore, Solana’s stablecoin transfer volume has plummeted, and application revenue has sharply decreased.

The broader cryptocurrency market downturn also contributed to Solana’s woes. Many major cryptocurrencies experienced declines, compounding the negative sentiment surrounding SOL. Analysts also point to negative funding rates, indicating a high number of investors betting against Solana.

The recent collapse of the LIBRA coin, losing over 90% of its $4 billion valuation, and the exploitation of Solana memecoins in the Bybit hack to launder stolen funds further eroded investor confidence. These events, along with concerns about scams and rug pulls within the Solana ecosystem, have contributed to a bearish market sentiment.

Technical analysis suggests further potential downside. Support levels are identified around $130 and potentially as low as $100, while resistance sits around $160. The long-term outlook remains uncertain, depending on the market’s reaction to the upcoming token unlocks and the broader crypto market conditions.

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