Why Did SOL Experience a Steep Decline? In-Depth On-Chain Analysis Provides the Answer
Original Author: 0xDecision, On-chain Analyst
Original Translation: zhouzhou, BlockBeats
Editor's Note: This article analyzes the impact of tokens such as SOL, TRUMP, LIBRA, and MELANIA on the market, pointing out that these projects have led to the collapse of the Solana ecosystem. In particular, the promotion and pump of tokens related to Trump and his wife have resulted in significant losses for investors. Additionally, it is anticipated that a large number of tokens will be unlocked for SOL on March 1, 2025, potentially causing a significant price drop. The article also mentions that the crypto market faces various issues such as scams, hacks, but the stablecoin index continues to rise.
The following is the original content (slightly reorganized for better readability):
I spent over 10 hours analyzing what happened with SOL, how TRUMP, LIBRA, and MELANIA destroyed this chain, and only one decision has since reversed the market. Here are measures you can take to protect your funds before a collapse.

Solana is an exceptionally fast blockchain designed for applications and crypto projects.
· It was built for speed and low cost, enabling transactions to be both fast and inexpensive.
· Currently, SOL is in a predicament due to some issues.
A month ago, SOL was trading around 270, and it has now dropped by 30%, which could be the beginning of a major plunge. I went through all the facts, and the results left me shocked...

The US President launched the TRUMP meme coin while SOL was hitting new highs. His move hurt the entire market, causing chaos. Post-launch, funds started flowing from other meme coins to TRUMP. In the first week of the TRUMP meme coin release, hundreds of Trump's wallets sold over $2 billion TRUMP. This led to a chart collapse, heavy losses for investors, and a mass exodus, which was the catalyst for the collapse of the Solana ecosystem.

After seeing how easy it was to rug pull, Trump's wife launched the MELANIA meme coin, which turned out even worse than TRUMP. Investors lost over 90% in the first 12 hours, while the team rug pulled over $500 million.

On March 1, 2025, the largest SOL token unlock will occur. Around $2.2 billion worth of tokens will be released, causing a significant price drop. Many long-position holders will sell to lock in profits, triggering a massive squeeze.

A week ago, @JMilei promoted a huge scam on Twitter. He also repeatedly shared the scam token's contract address on Instagram. The token's market cap surged from $10 million to $4 billion in just one hour but quickly collapsed within hours to $100 million.

Never before in this cycle have we seen so many scams occur so openly. Every three broke celebrities are talking about cryptocurrency and launching a token on SOL. Then, they rug pull the token by 99% within days, all done in plain sight, eroding confidence in the space.

The largest hack in cryptocurrency history has led to a significant ETH drop. Bybit was hacked, with $1.5 billion in ETH stolen, causing a substantial loss. Hacks always damage the market and people's confidence.

On the flip side, the stablecoin index remains well below levels seen in prior cycles, indicating how much new capital is entering the crypto market. It is currently just starting to rise.

Overall, the situation is not as bad as it may seem on the surface, but the reality is: we are in a phase of distrust. Such times are often the best opportunities. Before the market heats up again, learn new skills, improve yourself so that you can emerge as a winner at the end of this cycle.
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