Solana is facing another decline, losing 29% this year despite efforts to boost liquidity and inclusion in the US digital asset registry.
Current Status of Solana
According to TradingView data, Solana has fallen nearly 29% since the start of 2025, despite a $10 billion liquidity injection. This decrease occurred even though Solana was included in US President Donald Trump's digital asset pool, along with Cardano and XRP.
Impact of Market Liquidity
Despite the issuance of over $9.5 billion in new USDC since January 2025, as reported by Lookonchain, Solana has been unable to break its downward trend. Analysts suggest that the new liquidity flowed into memecoins instead of boosting SOL's price. Since the launch of the TRUMP token, Solana's price has dropped 49%.
Investor Challenges and Capital Outflows
Solana's price decline has been exacerbated by capital outflows of $485 million in February, as investors moved funds to safer assets like Ethereum, Arbitrum, and BNB Chain. This is part of a broader trend among crypto investors seeking safety amid recent memecoin scams.
Solana continues to face challenges in the crypto market despite significant liquidity injections and support from the US digital registry. Investors are becoming more cautious due to recent market events, leading to increased interest in more stable assets.
