From cointelegraph by Yashu Gola
Solana is on the verge of wiping out the entire gains it post-Donald Trump’s reelection in November.
On Feb. 24, the SOL/USD trading pair dropped 7.35% to reach $157.25, its lowest point since Nov. 6.
These losses are part of a broader correction that began on Jan. 19, when SOL reached its all-time high of $295.31. Since then, the price has tumbled 47%.
Key catalysts driving the SOL prices lower include:
- Solana’s alleged links with North Korea’s Lazarus Group.
- An upcoming SOL token unlocking event.
- Negative SOL funding rates.
Solana’s alleged ties with Bybit hackers
Solana's price is down today amid growing concerns over its association with high-profile hacks and memecoin scams.
Things to know:
- The $1.4 billion Bybit hack on Feb. 21 has been linked to North Korea’s Lazarus Group, a notorious hacking organization.
- Onchain investigator ZachXBT found that wallets tied to the Bybit hack were also involved in Solana-based memecoin scams, particularly “rug pulls” on Pump.fun.
- The same wallets were linked to the $29 million Phemex hack in January, indicating a pattern of fraudulent activity exploiting Solana’s ecosystem.
- Solana has been plagued by memecoin scams, including the $107 million rug pull of the Libra token, leading to a decline in user trust and capital inflows.
- The combination of hacks, scams, and negative sentiment is reducing trading activity and weakening demand for SOL, contributing to today’s price decline.
Related: ETF approval will help Solana break the ‘memechain’ narrative
Top Solana memecoins, such as Official Trump (TRUMP), Bonk (BONK), and Dogwifhat (WIF), have suffered huge losses on 24-hour and 7-day adjusted timeframes, as shown below.