The price of Solana (SOL) has fallen sharply below the $100 threshold, trading at $99.83 at press time, following widespread market panic triggered by former President Donald Trump’s recent global tariff announcement.
The decision, which has rattled risk asset markets globally, has shown that even cryptocurrencies, often touted as independent of traditional financial systems, are not immune to geopolitical and economic developments.
The shift in sentiment has contributed to a broader crypto downturn, with Bitcoin also plunging to $75,000 from its January high of nearly $110,000.
The sudden volatility underscores how political decisions can impact crypto markets just as strongly as they do equities or commodities.
Intense Trading Volume and Liquidations Mark a Brutal Selloff
Market data reveals just how severe the reaction has been within the crypto sector.
According to CoinMarketCap, Solana recorded a massive 24-hour trading volume of $7.9 billion, a spike of over 300%, indicating immense sell-side pressure.
The dramatic price swing led to widespread forced liquidations across the market.
Data from Coinglass shows that Solana suffered the second-highest number of liquidations among all altcoins, with over $62 million in long positions wiped out in just 24 hours.
These liquidations are likely a result of traders overexposed to leverage, caught off guard by the sudden macroeconomic shift.
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Solana’s Market Metrics Reflect Bearish Momentum Amid Panic
The ongoing selloff has pulled Solana into a steeper downtrend over the past week. SOL’s price is down 15.70% in the last 24 hours and nearly 20% over the past seven days.
With a circulating supply of 520 million tokens, Solana’s market capitalization now stands at approximately $51.67 billion.
While the asset has managed to retain a significant portion of its valuation, the recent decline underscores how vulnerable even strong Layer 1 projects can be during periods of macroeconomic uncertainty.
Investors are bracing for further volatility, especially if broader sentiment remains risk-off in the face of aggressive policy changes.
Despite Market Pain, Whale Activity Signals Long-Term Confidence
Amid the market turbulence, one large Solana investor, often referred to as a “whale”, has displayed a notable vote of confidence in the network’s long-term outlook.
On-chain data reveals that this address has staked 71,318 SOL, valued at over $7.63 million, despite currently sitting at a net loss.
The recent kind of activity suggests that not all major players are spooked by short-term fluctuations and that some see the recent drop as a buying or staking opportunity.
While the broader market grapples with uncertainty, moves like these hint at underlying confidence in Solana’s resilience and future recovery potential once macroeconomic conditions stabilize.