**Solana (SOL) Experiences a 60% Drop: Can ETFs Revive Its Fortune or Is $100 the New Normal?**
Solana (SOL) has seen its price tumble to $117, marking a significant 60% decline from its all-time high (ATH) of $293, as reported by CoinMarketCap. This downturn has been influenced by global trade tensions and a notable rise in Japan’s bond yield, which surged to 2.265%. The impact of these factors has been felt across the cryptocurrency landscape, with over 74,698 traders reportedly losing substantial amounts in the LIBRA scandal associated with Solana. Among these, 25 individuals have reported losses exceeding $1 million, leading to a decline in investor confidence in the network.
According to ETHNews, Solana’s current price is now 20% lower than it was a year ago, reflecting the broader turbulence in the market and challenges within the network itself. Global financial markets are under pressure from various geopolitical and macroeconomic factors. For instance, U.S. President Donald Trump’s announcement on March 4 regarding tariffs—25% on imports from Mexico and Canada and 20% on Chinese goods—ignited fears of a trade war. Although the implementation of these tariffs was postponed until April, the uncertainty surrounding the policy has made investors more cautious. At the same time, Japan’s 20-year bond yield reached its highest level since 2008, further dampening risk appetite as investors moved away from high-volatility assets like cryptocurrencies. The strengthening yen has also curtailed carry trades, leading to reduced capital inflows into speculative markets.
The decline in Solana’s value can be partly attributed to scandals involving certain tokens. The launch of the TRUMP and MELANIA tokens in January 2024 initially propelled SOL to its ATH, but this was followed by sharp declines. TRUMP’s price soared to $75 before plummeting to $5, while MELANIA lost over 90% of its value by March. Both tokens were tied to Solana’s ecosystem, raising questions about its governance and the quality of its projects. Additionally, a separate controversy surrounding LIBRA, a Solana-based token promoted by Argentine economist Javier Milei, has further fueled distrust.
The reported losses among traders are staggering: 71,369 individuals lost up to $10,000, 2,409 faced losses between $10,000 and $50,000, and 438 experienced losses ranging from $50,000 to $100,000. Furthermore, 318 traders lost between $100,000 and $250,000, while 87 lost over $250,000, 52 faced losses exceeding $500,000, and 25 reported losses of over $1 million.
Despite these challenges, there may be a silver lining for Solana. Companies like Bitwise, VanEck, and Grayscale have submitted applications to the U.S. Securities and Exchange Commission (SEC) for SOL-backed exchange-traded funds (ETFs). If approved, these products could attract institutional capital, although previous ETH ETFs have struggled since their launch in 2024. Analysts from ETHNews stress the importance of Solana shifting its focus from speculative tokens to more sustainable projects. “The network’s recovery hinges on moving away from political and meme-driven assets,” noted researchers at The Token Dispatch. Without significant structural improvements, SOL’s price trajectory will likely remain closely linked to macroeconomic risks and regulatory developments.
