Solana's market capitalization has experienced a significant decline, dropping below $190 following a peak at $263 a month ago. This represents a 25% decrease, causing it to fall to the sixth-largest cryptocurrency, behind Bitcoin, Ethereum, Tether, Ripple, and BNB. Concerns regarding a $2.1 billion token unlock scheduled for March 1, 2025, are likely impacting investor sentiment, as potential token sales could exert downward pressure on the price. Additionally, the emergence of Hyperliquid, a competitor focused on perpetual futures trading, has attracted some Solana investors. Market analysts observed particular weakness in SOL's performance compared to other major tokens after a discouraging Federal Open Market Committee meeting. Despite speculation about North Korean hackers affecting Hyperliquid's momentum and a mixed outlook for 2025, analysts suggest that regulatory developments and market dynamics could lead to future positive momentum for Solana. Nonetheless, the performance of concurrent memecoins illuminates the inherent volatility in the cryptocurrency sector.

Source 🔗