Solana Loses 6.2% In One Day, Weighed Down By The Collapse Of LIBRA

The crypto market is going through a new period of turmoil, and Solana (SOL) is experiencing the direct consequences. In 24 hours, the cryptocurrency has dropped by 6.2%, reaching $166.42, its lowest level since mid-December. This decline is set against a backdrop of controversies related to memecoins based on its blockchain, notably LIBRA.

Drop of Solana: The impact of the LIBRA scandal on crypto

Solana (SOL) is currently undergoing a decline of 6.2% over the last 24 hours, a drop that occurs in a context where SOL has recorded a decrease of 16.5% over the week and 39.1% compared to a month ago. The main trigger for this downfall is the debacle of the memecoin LIBRA which, after being endorsed by Argentine President Javier Milei, saw its value collapse. LIBRA lost more than $4.4 billion in market capitalization within just a few hours after its launch.

Initially, Milei’s support for the crypto project LIBRA quickly turned into disavowal, leading to fraud allegations against the Argentine president. Meanwhile, the LIBRA project is now at the center of insider trading suspicions. Blockchain investigations have also revealed links between the issuers of LIBRA and those of the memecoin MELANIA, associated with the First Lady of the United States, Melania Trump.

Repercussions on the SOL ecosystem

These controversies tarnish the image of the Solana ecosystem, often portrayed as fertile ground for new crypto projects. While its speed and low transaction costs attract developers, the proliferation of memecoins with dubious reputations could deter some institutional investors.

With a crypto market in full uncertainty and tensions surrounding memecoins, Solana must now regain investors’ trust to avoid a continuation of its decline in the coming weeks.

This situation highlights the inherent volatility of cryptocurrencies, particularly with memecoins, where speculation and public endorsement can cause extreme fluctuations in a very short time. The crypto community is closely monitoring how Solana will react to these turmoils and whether it can recover from this recent downfall.