Solana’s sell-off deepened this week, with SOL down about 18% week-over-week, according to CoinMarketCap data, as record on-chain activity failed to stem mounting bear market fears. The slide reflects a broad risk-off turn across crypto markets rather than Solana-specific weakness, with analysts pointing to thinning liquidity, shrinking spot volumes, and macro pressures tied to expectations of a more hawkish U.S. Federal Reserve. SOL is down more than 65% from 2025 highs. As of Feb. 10, SOL has fallen to around $84, shrinking the network’s market capitalization to roughly $48 billion.
The sell-off followed a broader market retreat driven by geopolitical tensions, shutdown risks in Washington, and renewed focus on U.S. monetary policy after President Donald Trump nominated former investment banker Kevin Warsh to lead the Federal Reserve. Trading activity has also thinned. Spot crypto trading volumes on major exchanges have fallen from roughly $2 trillion in October to about $1 trillion by late January, signaling waning investor engagement. Stablecoin balances have also fallen, with total stablecoin market capitalization down about $10 billion, suggesting traders are moving funds off-chain.
Analysts are divided on where SOL heads next. Longer-term forecasts remain optimistic, with Standard Chartered analyst Geoff Kendrick projecting SOL could reach $2,000 per token by 2030, citing the network’s role as infrastructure for payments and financial services. Solana’s on-chain metrics persist despite price declines. The network has posted strong throughput and, in some measures, outperformed peers on key activity metrics this week, including tokenized stock trading volume and stable demand for execution with relatively low fees.
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