What’s Driving the 10% Drop and Bearish Sentiment | Airdrop Alert Pro

Solana has been one of the worst-performing cryptocurrencies in the past 24 hours, down 10% to $162. The decline continues to decline as the network experiences lower activity and increases bearish feelings. These are four key reasons for the sharp decline of Solana today.

Solana’s link in high-profile carpet scam

One of the main reasons Solana is that it is mentioned in the high-profile carpet scam. The report has surfaced Solana wallets, including multiple fraudulent projects including Libra and Melania, are all linked to politicians.

These projects made huge profits through manipulation strategies before they disappeared, leaving investors with losses. Therefore, people are losing trust in Solana.

Internet activity drops sharply

The decline in Solana chain activity is another relevant factor. Number of users on Solana network Has been from 18.5 million From November to 8.4 million, a 55% drop.

In addition, Solana’s total funding dropped from $2 billion to $26 million. As people use it less, the price of Solana is struggling.

Upcoming token unlock

Investors also increase supply for the coming months. More than $15 million of SOL tokens worth more than $7 billion will be unlocked between February and April.

This increase in circulating supply could create greater sales pressure, further weakening Solana’s prices. Market analysts have advised caution as unlocking events can bring additional volatility.

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Solana’s Fight against Bitcoin and Ethereum

Solana has also shown weaknesses against major cryptocurrencies such as Bitcoin and Ethereum. SOL/ETH trading pairs have fallen 28% since early February, indicating that Ethereum is strengthening Solana.

In addition, the data comes from Lookonchain display The $772 million stableman exited the Solana ecosystem in just one week, indicating a decrease in investor trust.

SOL may continue to face downward pressure until confidence in the network is restored and transaction volume increases.

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