Solana has dropped nearly 29% since the start of 2025, despite a $10 billion liquidity injection and its inclusion in President Donald Trump’s Digital Asset Stockpile alongside Cardano and XRP. Data shows that the decline has continued even with the minting of over $9.5 billion in new USDC stablecoins since Jan. 1. Analysts suggest that much of this liquidity has flowed into meme coins rather than boosting SOL’s price. Since the launch of the Official Trump token (TRUMP), Solana has fallen from $261 on January 18 to $133 on March 9, marking a 49% decline.
The drop comes as part of a broader downturn in the cryptocurrency market, with total market capitalization shrinking by nearly 17% since the beginning of the year. Bitcoin dominance has risen by 1% to 59.6%, indicating that investors are shifting toward safer assets. Solana experienced over $485 million in capital outflows in February, with much of the money moving to Ethereum, Arbitrum, and the BNB Chain. A Binance Research report described the trend as a general flight to safety in the market. The report also pointed out that some capital has gone into BNB Chain meme coins, partly influenced by tweets from Binance co-founder Changpeng Zhao about his dog, Brocolli.
A series of meme coin-related scams have also shaken investor confidence in Solana. Most notably, the launch of the Libra token, which Argentine President Javier Milei had endorsed, turned into a rug pull. Insiders allegedly drained over $107 million in liquidity, causing the token to collapse by 94% within hours and wiping out $4 billion in investor capital. Disappointment surrounding Solana-based meme coin projects has added to selling pressure on SOL.
Dan Hughes, founder of the decentralized finance platform Radix, said that when the Trump coin launched, most of the new liquidity in the market came from investors selling off other crypto assets in a rush to buy TRUMP. This movement redirected capital away from coins like Solana, contributing to its decline.
Despite being part of the U.S. Digital Asset Stockpile, Solana has struggled to hold investor interest. The large amount of new liquidity entering the market has not translated into price support for SOL. Instead, speculative trading in meme coins and a shift toward more stable assets have fueled the downturn. With declining confidence and continued capital outflows, Solana’s short-term recovery remains uncertain.