Solana Drops Below $110 After Shocking Shift in Meme Coin Frenzy

Solana (SOL) experienced a market decline, which pushed its price below the $110 level on Monday, April 7, by exceeding 15 percent in value. The token faced a price decline following a fast reduction of meme coin transactions, which used to dominate the Solana network.

According to AltcoinBuzz, the collapse of the “Pump Fun” meme coin trend dealt a significant blow to Solana. The deployment of new protocols and network operations utilizing the meme coin functionality represented more than 70 percent of recent launches while carrying out 56 percent of all transactions on the platform. During February, the trend vanished altogether, causing revenue generated by it to drop by 92 percent.

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The reduction in meme cryptocurrency popularity diminished overall involvement within Solana’s operational framework. The decrease in speculative trading, combined with lower transaction activity, has caused SOL’s price to decline as the speculative support that kept its performance escalating disappeared. The decreased network speed has diminished SOL’s ability to hold its peak value positions.

Market Turmoil and Token Unlock Deepen the Pressure on Solana

The broader crypto market downturn has only worsened Solana’s situation. Bitcoin fell to $75,000, dragging down other major altcoins. The Bitcoin price decline resulted in a general market decrease for major altcoins. Concerns over a potential global recession and new tariffs introduced by President Donald Trump have triggered a wave of risk-off sentiment. The changes in market conditions induced various investors to sell their volatile digital assets.

Adding to the pressure, a fresh token unlock of $200 million worth of SOL tokens recently flooded the market. The increase in supply led several large investors to sell off their holdings, accelerating the downward trend in price. The growing supply pushed various big investors to liquidate their holdings, thus making prices fall even faster. The market outlook for Solana became more unpredictable when whales executed substantial sales during the sell-off period.

Despite the sharp fall, trading activity remains high on exchanges such as Binance. Analysts believe Solana’s ability to hold above the $100 level could be a key sign for near-term market stability.

In addition to its existing market competition, Solana continues to expand. The growing interest in Cardano’s midnight and Sui blockchain could potentially shift Solana’s market positions in the Layer 1 blockchain sector.

The recovery prospects receive support from future developments that may emerge. The recent recognition by the SEC of a Fidelity-structured application for a Solana ETF might pave the way for funds managed by institutions to invest. Through its upcoming Fire Dancer upgrade, Solana will deliver substantial technical improvements to the network systems.

Also Read: Panic Hits Crypto Markets as Bitcoin Crashes Below Key Level – Here is What You Need to Know

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