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Why Is Solana Price Down 9.3% Today?

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3 days ago

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Solana price has been showing against the rest of the crypto market dropping another 9.3% today and moving to $166. This happened as Solana-based meme coin LIBRA faces massive pump and dump triggering a massive selloff across all meme coins in this sector. Furthermore, on-chain data reveals a strong drop in the network activity showing that traders are moving away.

Solana Price Under Pressure as Network Activity Plummets

Crypto analyst Ali Martinez has highlighted a significant downturn in activity on the Solana network. According to Martinez, the number of active addresses has plummeted from 18.5 million in November to just 8.4 million as of today—a decline of nearly 55%. This has further led to a negative sentiment around the Solana price action.

Source: Ali Charts

Additionally, the total volume transferred on the Solana network has seen a drastic reduction, falling from $2 billion in November to a mere $26 million. The stark drop in both metrics raises concerns about the network’s current adoption and utility, marking a sharp contrast to its previous activity levels, noted Martinez.

Source: Ali Charts

SOL Action Moving Ahead

Since the beginning of 2025, Solana has been in the grip of bears shedding more than $80 since its peak in January last month. Crypto market analyst IncomeSharks traders have mistaken the Solana price action as bullish consolidation instead it represents a “blow off top with a massive bear div showing momentum stalling.”

The current price action places SOL at levels last seen in early January, effectively erasing gains made during the year’s opening rally. With the SOL price losing the crucial support of $175, it could correct further down to $160 level. Any positive development around the spot Solana ETF approval could serve as a catalyst ahead.

Source: IncomeSharks

As of press time, the SOL price is trading 9.28% down at $166.99 with daily trading volumes surging by 75% to $4.58 billion. Furthermore, the Coinglass data shows that SOL futures open interest have dropped 2.5% to $5.79 billion while the 24-hour liquidations have surged to $32.94 million of which $28.9 million is in long liquidation.

Negative Sentiment Around SOL Unlocking Peaks

Market analysts have been advising investors to stay away from Solana (SOL) for a while amid the token unlocking coming on March 1. Solana is set to see a significant increase in its circulating supply over the next three months (February, March, and April). With a current token inflation rate of 4.715%, more than 15 million SOL tokens—valued at over $7 billion—are expected to enter the market during this period. This could keep Solana price under pressure moving ahead.

Source: X.com

Crypto trader RunnerXBT has cautioned that this is a “dangerous” time to invest in Solana. Referring to the upcoming token unlock event, the trader pointed out that firms such as Galaxy, Pantera, and Figure stand to secure unrealized gains of $3 billion, $1 billion, and $150 million, respectively, once the SOL unlock takes place.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Trump’s Financial Empire Makes Waves with $10M WLFI, $125K SEI Buy

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56 minutes ago

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February 20, 2025

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United States President Donald Trump’s World Liberty Financial announced another round of investments this week to further build its crypto portfolio. According to on-chain data, World Liberty Financial withdrew $10 million USDC from its Coinbase account to purchase 200 million WLFI tokens and another $12k to buy 547,990 SEI tokens, with an average price of $0.228.

Both transactions were recorded last February 20th, as reported by Onchain Lens. The crypto firm’s latest transaction coincided with the release of its macro strategy last February 12th.

Trump Family’s Foray Into Crypto Continues

World Liberty Financial is a crypto and DeFI project supported by the US President and some family members, including Donald Trump Jr., Eric Trump, and Barron Trump. It aims to strengthen the US dollar’s position in the highly competitive DeFi space.

According to company records, Trump and his associates control 60% of the WLF, which assigns them 75% control over the firm’s revenue and access to 22.5 billion tokens. Trump’s family also owns most of the Trump Media & Technology Group, which recently announced its shift to crypto after starting with financial services.

Total crypto market cap currently at $3.15 trillion. Chart: TradingView

WLF’s Macro Strategy – What We Know So Far

Last February 12th, Trump’s crypto company announced the creation of the Macro Strategy, a strategic token reserve that aims to boost its competitiveness in DeFi. In a Twitter/X post, WLF shared that this new project aims to enhance stability, foster growth, build trust, and promote strategic partnerships with financial institutions.

WLF recently received a boost from Tron’s Justin Sun, who invested at least $75 million in its native token, making him one of the most prominent investors. However, Sun’s entry into the company was criticized due to his alleged links with illegal financial activities. Aside from Sun’s investment, WLF has offered various deals to its investors, making it one of the biggest crypto launches to date.

WLF Continues To Boost Holdings, As Criticisms Start To Trickle In

WLF continues its expansion in the crypto market thanks to Trump’s backing and the entry of Sun. According to a BitMart Research report, as of February 9th, the company has sold $455 million worth of tokens. Trump’s crypto project generated $319 million from selling its 21.3 billion tokens at $0.015 each. And for its second round of sales, the company earned another $136 million.

However, WLF remains at the center of controversy due mainly to its links with the Trump family. According to some critics, Trump’s crypto project is self-serving and only benefits the president’s immediate family members and allies.

Featured image from ClutchPoints, chart from TradingView





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Atlanta Federal Reserve President Predicts Two Interest Rate Cuts in 2025

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2 hours ago

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February 20, 2025

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In a recent turn of events, Atlanta Federal Reserve President Raphael Bostic hinted at the Fed’s potential decisions on interest rates. According to the Federal Reserve President, the central bank may reduce interest rates twice in 2025. However, he expresses considerable uncertainty about the impact of President Donald Trump’s trade and migration policies.

Atlanta Federal Reserve President Comments on Interest Rate Cuts

According to a recent Reuters report, Raphael Bostic, the President of the Atlanta Federal Reserve, stated that the Fed will lower interest rates twice this year. However, adding uncertainty surrounding the expectations, he highlighted other major factors that could influence the Fed’s decision.

“While that’s my baseline expectation, there’s a lot that is going to happen that could influence that really in both directions,” posited Bostic. Further, citing potential changes in trade, immigration, energy, and fiscal policies, he added, “Right now, there is a lot of uncertainty about where some important factors are going to land.” Concluding his view, he added that his current outlook may likely change after six months.

Fed President’s View on Strong US Economy

Moreover, in an essay today, the Atlanta Federal Reserve President wrote about the central bank’s solid monetary policy and the country’s strong economy. According to Bostic, the current monetary policy is well-positioned.

Though he believes the US economy is strong, he doesn’t see the factors as a reason to relax. His statement highlights the uncertainty surrounding the new Trump administration’s policies and moves. His concerns suggest that heightened policy uncertainty could impact the labor market and inflation.

Federal Reserve’s Rate Cut and Jerome Powell’s Hawkish Stance

Following the Federal Reserve’s FOMC meeting at the end of January 2025, Chair Jerome Powell announced the bank’s decision to hold the interest rate unchanged at the 4.25%-4.5% level. The development initially sent the crypto market into a slump, but it has since staged a gradual recovery.

Later, on February 12, at his semi-annual monetary report, Powell shared a hawkish approach to interest cuts. He stated that the Fed sees no urgency in altering its policy as the economy remains strong. He added that the policy stance is “less restrictive” than before.

Inflation Deemed the Biggest Risk

The Atlanta Federal Reserve President considers inflation the biggest risk, despite its recent decline. With the risks to the Fed’s dual mandate now more balanced, he is increasingly focused on achieving 2% inflation without compromising labor market gains. Bostic stated,

I still think the biggest risk is inflation. As inflation has come way down, the risks to the mandates have come more into balance and so I’m more sensitive now to the possibility that we could get inflation at 2% without seeing a lot of damage in labor markets.

Nonetheless, the Federal Reserve’s next move remains unclear. At the same time, it remains uncertain how it will impact the crypto market. However, if the Fed maintains its hawkish stance, it could potentially trigger a bearish sentiment.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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John Deaton Highlights Ripple’s Role In XRP ETF’s Acknowledgement

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4 hours ago

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February 20, 2025

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The US Securities and Exchange Commission (SEC) has taken a significant step by acknowledging XRP ETF applications from multiple asset managers, including CoinShares, Canary Capital, and WisdomTree. In response to the development, XRP lawyer John Deaton reflected on Ripple and XRP’s evolution over the past four years.

Notably, the XRP ecosystem has undergone significant transformations since the SEC lawsuit in 2020. Though Ripple faced unprecedented challenges over the period, recent developments including major court wins and Donald Trump’s re-election have marked a turning point. Let’s unveil XRP’s major developments over the period, leading to the SEC’s positive approach to XRP ETFs.

SEC Acknowledges XRP ETFs: John Deaton Weighs In

The SEC’s acknowledgment of XRP ETFs has sent shockwaves of optimism through the Ripple community. In a series of surprising events, the SEC recognized multiple asset manager’s XRP ETFs, fueling excitement.

Commenting on this bullish development, pro-XRP attorney John Deaton stated, “What a difference four years of litigation and an election can bring.” Via his latest X post, Deaton offered the community a unique perspective on XRP’s transformation over the past few years.

According to his remarks, the SEC’s recent move is largely attributed to Ripple’s court wins and Donald Trump’s presidential win in the 2024 election.

XRP ETF Acknowledgement: Broader Implications

Major investment firms are vying to launch an exchange-traded fund tracking XRP. The frenzy began when Grayscale proposed converting its XRP Trust into an ETF, prompting CBOE and Nasdaq to file 19b-4 applications.

The SEC’s subsequent acknowledgment of applications from Grayscale, 21Shares, and Bitwise sparked widespread optimism. Most recently, the SEC has also recognized XRP ETF applications from CoinShares, WisdomTree, and Canary Capital, further fueling excitement.

Key Factors Influencing XRP’s Journey

Notably, the SEC’s recent XRP ETF acknowledgment has been influenced mainly by two major events: Ripple’s court wins and Donald Trump’s election win. This development boosts optimism, even if it doesn’t confirm a potential green light for the ETF launch.

The crypto regulator sued Ripple in 2020, alleging the platform violated the federal securities law and raised $1.3 billion by offering unregistered securities. After a long battle, Judge Analisa Torres ruled that XRP in its digital token form is not a security. In a subsequent judgment in August 2024, Judge Torres drew a clear line between Ripple’s retail and institutional sales, declaring the retail sales to be legitimate.

Significantly, this regulatory status has contributed to the SEC’s recognition of the XRP ETFs. As per Deaton’s comments, in addition to this development, Trump’s re-election is another major event that impacted Ripple’s journey.

Specifically, Trump’s pro-crypto stance and the SEC’s regulatory shifts have potentially paved the way for a more favorable environment for XRP.

Ripple’s Evolution Since 2020 SEC Lawsuit

Ripple, founded in 2012, had established itself as a leading global payments platform by 2020. But its momentum was halted by the SEC lawsuit. Prior to the lawsuit, XRP remained a major player alongside Bitcoin and Ethereum. The token hit an all-time high of $3.317 in the 2017-2018 bull run, marking a staggering hike of 19,000%.

However, the lawsuit severely affected XRP’s trajectory. Major exchanges like Coinbase, Binance, and Kraken suspended XRP from trading following the lawsuit. Soon, the token’s price and market cap plummeted with XRP losing its ground.

Notably, XRP experienced a remarkable resurgence, fueled by Ripple’s courtroom victories and Trump’s election win. The cryptocurrency reclaimed its third spot on CoinMarketCap, soaring to a high of $3.2 as it eyed its all-time high. This upward trajectory was further reinforced by the SEC’s recognition of XRP ETFs. It was highlighted by John Deaton, underscoring Ripple’s continued growth and momentum.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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