TradingView data reveals that Solana (SOL) has seen a sharp decline of nearly 29% since the onset of 2025, even after a $10 billion liquidity injection and being added to the US Digital Asset Reserves.
This fall in price is surprising given Solana’s status as one of the select altcoins to be incorporated into the Digital Asset Reserves under the administration of US President Donald Trump, alongside Cardano (ADA) and XRP.
Despite the creation of over $9.5 billion in USDC stablecoins since the start of the year, Solana has been unable to reverse the falling trend. Some market analysts speculate that the fresh liquidity has been directed towards memecoins, leaving SOL’s price unaffected.
Since the issuance of the Official Trump (TRUMP) token, SOL has plummeted by 49%, from $261 on January 18 to a low of $133 on March 9. According to Dan Hughes, founder of decentralized finance platform Radix, the launch of the Trump coin saw a liquidity influx drawn from other cryptocurrencies, as investors scrambled to buy TRUMP in a state of FOMO (Fear of Missing Out).
The decline in Solana’s value comes amidst a broader market downturn, with the total market cap of cryptocurrencies falling nearly 17% since the beginning of 2025.
Investors seem to be shifting towards safer assets in the wake of a series of memecoin scams, which may also contribute to Solana’s downward trend. Solana experienced over $485 million in outflows in February, with funds primarily redirected to Ethereum, Arbitrum, and the BNB Chain.
A Binance Research report shared with Cointelegraph stated, “Overall, there is a broader flight towards safety in crypto markets, with Bitcoin dominance increasing 1% in the past month to 59.6%.”
Disappointment in Solana-based memecoin launches, particularly the Libra token backed by Argentine President Javier Milei, has also dampened investor enthusiasm. Insiders of the project are alleged to have drained over $107 million in liquidity in a rug pull, leading to a 94% price drop within hours and the evaporation of $4 billion in investor capital.
