The Solana value continues to move through a market slump as it lost 33% since reaching its yearly peak. The price of the token stayed around $184 starting Monday and moved towards its February 2nd low. Solana’s prices fall sharply because its network stops growing plus minor investment scams appear in its meme coin space.
Through CoinGecko research, coin markets on Solana lost $13.5 billion since January when their value topped $25 billion. Individual meme token holders face major losses since prices dropped steeply from personal best levels.
Since January TRUMP has gone from its initial value of $103 down to $18 in current market conditions. During the last week Fartcoin, ai16z, Gigachad, and Popcat as well as other tokens lost more than 15% each.
Solana Trading Volumes Drop
Solana sees developers launch meme coins and boost their price artificially before selling out which leaves investors to suffer losses. The TRUMP token insiders benefited from its rising value by selling their assets right before it crashed. People doubt if meme coin projects on the token can continue as a profitable business model.
The amount of transactions on Raydium, Orca, and Jupiter fell because of decreased user activity on the token. Solana’s trading volumes dropped 25% to $26.21 billion last week which let BNB Chain claim higher activity when it processed $30 billion of trades during this period.
A decrease in stablecoin transactions shows clearly that network operations are slowing down. The stablecoin support on Solana failed to reach growth during the past week as its supply dropped by $772 million compared to Ethereum’s $1.1 billion increase. The decrease in stablecoin usage shows in blockchain due to these tokens driving most business transactions on blockchain platforms.
In the past 7 days, stablecoins(USDT&USDC) on #Ethereum increased by $1.1B, and stablecoins(USDT&USDC) on #Solana decreased by $772M.https://t.co/yB4qdHHRsH pic.twitter.com/Nx03I8vZlB
— Lookonchain (@lookonchain) February 17, 2025
Solana Faces Key Support
Earnings in the Solana ecosystem produced dramatic drops over the last few weeks. Network transactions on Solana now produce only $2 million per day while in January fees hit $31 million.
The market indicators predict that Solana will continue to drop in value. The daily price chart shows SOL ongoing price reduction from its peak at $300 in January. Right now Solana tests its important support zone as an upward trend line from last August protects the price.
Solana moves closer to a death cross pattern since its moving averages for fifty and two-hundred days cross through each other in a bearish direction. 
The double-top pattern at its $265 level creates a danger sign because $170 stands as its main support line. SOL has to break through its important support area before taking a significant plunge towards $110 which represents a 40% decrease from its present value.
People across the Solana ecosystem will study how well the network survives both its structural problems and regulatory challenges.
