Solana Drops 46% in February to $153 Amid Libra Scandal, ETF Applications Await SEC Approval

Solana, a prominent cryptocurrency, has seen its value drop to $153, marking a 46% decrease in February 2025 and reaching its lowest price since October 2024. The token's value has declined by 25% over the past two weeks and 9% in the last 24 hours.

This downturn follows a scandal involving the Libra token, which lost 90% of its value in a short period, and a cooling of interest in meme coin initiatives that had previously favored the Solana network. The total market capitalization of meme coins on Solana fell from $25 billion in January to $9.8 billion, impacting popular tokens like Dogwifhat, Official Trump, and Pudgy Penguins.

Despite the price drop, multiple asset managers, including Franklin Templeton, Grayscale, Bitwise, Canary, 21Shares, and VanEck, have applied for exchange-traded funds (ETFs) based on Solana's spot price. Bloomberg Senior Analyst Eric Balchunas estimates a 70% chance of SEC approval for these ETFs.

The Solana ecosystem has experienced a decline in active users, with the number dropping to 87.3 million, the lowest since October 2024. Daily revenue has also fallen below $1 million, and the volume of decentralized exchanges (DEX) on Solana has decreased by 36% in the last week, now lower than Ethereum and Binance Smart Chain.

Technical analysis indicates a bearish trend for Solana, with a 'death cross' observed and the token's price potentially heading towards $110, a 30% drop from its current level, unless it rebounds above $200. Ethereum has outperformed Solana on the downside, with a 18% drop compared to Solana's 38% decline over the past month.

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