Solana (SOL) Drops 4% as Bitcoin Also Retracts, Giving Back Part of Its Recent Rally

Solana extended its decline as Bitcoin also retreated, with the broader crypto market under pressure following reports of a security breach at Coinbase.

Solana (SOL) dropped 4% over the past 24 hours on Thursday, giving back part of its recent rally as broader cryptocurrency markets tracked Wall Street’s pullback.

The token fell from a high of $178 to around $167 as the Dow Jones Industrial Average traded lower and the S&P 500 looked set to snap a three-day winning streak.

The decline in the U.S. stocks came after reports showed a slight rise in weekly jobless claims and May consumer price index (CPI), while Philadelphia Federal Reserve President Patrick Harker said he was leaning towards another interest rate hike at the upcoming meeting.

Solana extended its decline as Bitcoin also retreated, with the broader crypto market coming under pressure following reports of a security breach at Coinbase.

According to CEO Brian Armstrong, hackers exploited the exchange’s systems and are demanding $20 million in Bitcoin to avoid releasing the compromised data.

The incident involved cyber criminals who reportedly bribed and recruited rogue overseas support agents.

Coinbase says the insiders pulled personal data that it estimates could impact less than 1% of the exchange’s monthly tracked users.

While the theft is a threat, Coinbase maintained there was no exposure of passwords, private keys, or funds for other users.

While it plans to reimburse impacted customers, it’s not paying the ransom and is ready to engage law enforcement.

“We will pursue the harshest penalties possible and will not pay the $20 million ransom demand we received. Instead, we are establishing a $20 million reward fund for information leading to the arrest and conviction of the criminals responsible for this attack,” Coinbase wrote in an update.

Can SOL bounce to $300?

SOL reached highs of $294 in January 2025, riding the overall crypto momentum that followed President Donald Trump’s election.

While the token is down 42% since it recently climbed from lows of $123. Bulls managed highs of $182 on May 14, before today’s dip.

Whether buyers can reclaim this move remains to be seen. However, analysts at Glassnode note key metrics are in favour of bulls.

“After a few months of realized cap outflows, $SOL is showing signs of a trend reversal. Its 30-day capital inflows are now back in positive territory, growing at ~4–5%, on par with $XRP. This points to a renewed demand returning to the #Solana ecosystem,” Glassnode noted.

After a few months of realized cap outflows, $SOL is showing signs of a trend reversal. Its 30-day capital inflows are now back in positive territory - growing at ~4-5%, on par with $XRP. This points to a renewed demand returning to the Solana ecosystem.

The downturn in Solana and other altcoins comes amid a stall in Bitcoin’s dominance, which peaked at 64.4% on May 8.

Data from Glassnode shows Ethereum’s dominance has edged up 3% to 9.75%, while altcoins collectively gained 2% to 22.35%.

Despite this rebound, altcoin dominance remains below recent highs, underscoring that the market is still largely in a “BTC-driven cycle,” as analysts describe it.

In this environment, Solana and other high-beta assets could continue to lag in the near term as capital remains concentrated in Bitcoin.