Solana Faces Decline Amid Token Unlock Concerns

Solana's cryptocurrency (SOL) has experienced a significant decline, breaking below key price levels and reaching its lowest since October 2024. Anticipation of a substantial token unlock event on March 1, 2025, releasing 11.2 million SOL tokens linked to the FTX bankruptcy, is increasing market uncertainty and potential selling pressure. This has led to a 35% decline over the past month and a 7% drop in the last 24 hours. Additionally, Solana's network activity has decreased, with declining daily active addresses and a 36.7% drop in decentralized exchange (DEX) volume. The broader cryptocurrency market sentiment is also affected by the fallout from the Libra scandal and cooling interest in meme coins. Despite these challenges, efforts to stabilize the platform include initiatives like PumpFun's AMM liquidity pools which aim to boost network activity.