Solana has fallen nearly 29% since its launch in 2025 despite including it in $10 billion in liquidity injections and President Donald Trump’s digital asset stockpile along with Cardano and XRP. Data shows that minting of more than $9.5 billion in new USDC stub coins has continued since January 1st. Analysts suggest that much of this liquidity has flowed into Meme Coins rather than boosting the price of Sol. Since the launch of the official Trump token (Trump), Solana has dropped from $261 on January 18th to $133 on March 9th, showing a 49% decline.
The decline comes as part of a wider recession in the cryptocurrency market, with total market capitalization shrinking by nearly 17% since the start of the year. Bitcoin’s advantage has increased by 1% to 59.6%, indicating that investors are moving towards safer assets. Solana experienced more than $485 million in capital outflows in February, with much of its money moving to Ethereum, Arbitrum and the BNB chain. The Binance research report described this trend as a general flight to safety in the market. The report also pointed out that some capital has entered the coins of BNB chain memes. This is influenced by a tweet about the dogs of Binance co-founder Changpeng Zhao.
A series of memecoin-related scams have also shaken up investors’ trust in Solana. Most notably, the release of the Libra token, supported by Argentine President Javier Miley, became a rug pull. Insiders emitted more than $107 million in liquidity, causing to collapse 94% of tokens within hours, and wiped out $4 billion in investor capital. The disappointment surrounding the Solana-based Memecoin project has added sales pressure to SOL.
Danhughes, founder of decentralized finance platform Radix, said when Trump Coin launched, most of the new liquidity in the market came from investors who were rushing to buy Trump and selling other crypto assets. The movement redirected capital away from coins like Solana, and contributed to its decline.
Despite being part of the US digital asset stockpile, Solana has struggled to attract investors’ interest. The massive amounts of new liquidity entering the market have not been converted into SOL price support. Instead, speculative trading of meme coins and shifting to more stable assets has driven the recession. Decreased reliability and continued capital outflows have left Solana’s short-term recovery uncertain.