Is Solana Dead?

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Hey there, Degens!

We’ve been hearing the doom-and-gloom: “Solana’s dead! It crashed from $290 to $170, and meme mania is over!” But is it really gone? Short answer: no. It’s just limping along in this gnarly market.

Today, we’ll break down:

1. Why Solana’s downward slide might be less terrifying than it looks

2. FUD from the LIBRA token scandal that’s rocking the entire ecosystem

3. Why the broader crypto downtrend might be overshadowing SOL’s real potential

4. BTC nearing $98K with a possible run to $108K—and the gold & S&P 500 mania

So buckle up—because despite all the drama, Solana might not be six feet under just yet.

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1. The “Crash” That Wasn’t (Totally) Unexpected

• Solana’s down ~11% in a week, and folks are freaking out about volume drops on the network. But let’s keep it real: the run to $290 was a bit of an outlier, pumped by hype around the $TRUMP meme token.

• The entire crypto market’s been in a slump since mid-December. BTC, ETH, altcoins—they’re all sputtering. So it’s not just Solana taking hits here.

TL;DR: The bad news smacked Solana extra hard, but the broader downtrend means nobody’s partying like it’s 2021.

2. LIBRA Scandal: The New FTX?

• The sudden $LIBRA token fiasco has left retail rekt and triggered major FUD about Solana’s ecosystem. People are calling this the “biggest scandal since FTX.”

• Argentina’s President endorsed LIBRA, it mooned to a $4.5B market cap, then insiders dumped. Now, there are allegations swirling around major Solana players—like Jupiter (DEX) and Meteora (launchpad)—possibly messing with liquidity or trading on inside info.

• Combine that with shady chat logs, questionable denials, and calls for official investigations, and you’ve got a recipe for pure chaos.

Impact on SOL: Fear, uncertainty, doubt. Traders see these stories and think “time to run,” especially in a downtrend.

3. Meme Coin Bubble Burst? Not Exactly…

• Meme coins are a huge chunk of Solana’s DEX volume—some say up to 70%. That’s a lot. So if that bubble popped, it’d be a big problem.

• Right now, meme coins still make up ~67% of all trading volume on SOL DEXes, at around $3.2B. Sure, that’s off the crazy highs we saw after $TRUMP launched, but it’s not exactly doomsday.

• Volume is still above the late-December lows—so while sentiment is sour, there’s no outright ghost town scenario yet.

Translation: The “memecoin mania” might be simmering down, but it’s not totally dead. Calm down, breathe.

4. The Bigger Picture: Entire Market’s in a Funk

• Take a look at the total crypto market cap; it’s been sliding in a descending channel since December 17th. Solana’s chart just follows the broader pattern—plus some extra drama.

• With negative macro signals, plus the LIBRA meltdown, it’s no surprise $SOL puked 12%.

• If you zoom out, it’s more of a typical market correction. The real question: can Solana recover once the dust settles?

Pro Tip: If you see a coin tumble but the fundamentals remain strong (community, devs, real usage), it might just be a dip worth watching.

5. So…Dead or Alive?

Our take: Solana isn’t dead; it’s just having a rough quarter. The LIBRA fiasco, insider allegations, and overall bear vibes are weighing it down. But if the core fundamentals hold (DeFi usage, dev community, NFT traction), SOL can bounce back like it did post-FTX.

No chain is immune to FUD, especially in a broader bear cycle. And if the next run happens, Solana could easily go from “lying in a ditch” to “rocketing to new highs” in a matter of weeks. Just ask the Luna refugees from last year.

6. Bonus: BTC Eyes $108K?

• Meanwhile, Bitcoin is flirting with $98K, the highest daily close in weeks. Some traders say once it breaks $100K, it could push up to $108K.

• Stocks and gold are already charting new highs—gold just crossed a $20 trillion market cap, while the S&P 500 soared. If Bitcoin decides to follow suit, we might see bigger fireworks than the last 4th of July.

Final Take

Don’t bury Solana yet. Yes, it’s battered, yes, the memecoin hype is down, and yes, the LIBRA fiasco is a gut punch. But if you step back, it’s mostly just the usual crypto chaos amplified by a steady market downtrend. Keep an eye on fundamentals, ignore the noise, and you might find an opportunity in the carnage.

Stay degen

— The DegenDen Team

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