Solana’s price continues to struggle under pressure from the growing memecoin market despite showing resilience following its largest-ever token unlock.
Solana (SOL) fell over 45% since the Official Trump (TRUMP) memecoin was launched, from over $261 on Jan. 18 to $143 on March 2, TradingView data shows.
The growing investor appetite for memecoins may be limiting Solana’s price performance, according to Dan Hughes, founder of the decentralized finance platform Radix.
SOL/USDT, 1-day chart. Source: Cointelegraph/TradingView
Memecoins “don’t tend to draw in much external capital flow; instead existing eco-system capital “round-robins” from one meme to the next,” Hughes told Cointelegraph, adding:
“Even in the case of TRUMP, most of the inbound liquidity was outflow from other crypto assets, people selling their crypto portfolio to buy TRUMP in extreme FOMO [fear of missing out].”
“You can see the effect in the market,…
