Solana Faces Brutal Sell-Off as TVL and Memecoin Hype Collapse
Solana is struggling to regain momentum, with its price down 41% in the past 30 days, largely due to fading memecoin activity and a sharp drop in total value locked (TVL). The SOL double-top pattern hints at even more losses ahead.
Solana’s Price Battles Heavy Resistance
At $136.45, SOL is trading 52% below its all-time high of $295 from Jan. 19. This steep decline is closely mirroring the 40% slump in Solana’s TVL, a crucial indicator of DeFi health and investor confidence.
TVL Collapses by $5 Billion in a Month
Solana’s TVL has plummeted 39.2% in just 30 days—the largest single-month drop since the FTX collapse in November 2022. From an all-time high of $12.1 billion on Jan. 24, the network’s TVL now sits at $7.4 billion, raising concerns about liquidity flight and decreasing network participation.
TVL represents the total capital locked in DeFi protocols—higher values indicate growing investor trust, while sharp declines suggest widespread capital outflows. Data from DefiLlama highlights severe TVL losses among Solana’s biggest DeFi platforms:
• Raydium: -53%
• Jupiter DEX: -25%
• Jito Liquid Staking: -41%
• Save Lending: -42%
Onchain Activity Sees an 88% Collapse
Solana’s onchain transaction volume has fallen from $97 billion in January to just $11 billion this week—an 88% nosedive.
With investor sentiment weakening and DeFi participation dropping by 20-40%, Solana now faces a critical support test. Can it recover, or is further downside inevitable?
