Solana (SOL) Has Fallen Nearly 29% Since the Start of 2025 Despite $10B Injection of New Liquidity

Solana has fallen nearly 29% since the start of 2025, despite the injection of $10 billion in new liquidity and its inclusion in the US Digital Asset Stockpile

Solana (SOL) has lost nearly 29% since the beginning of 2025 despite the injection of $10 billion in new liquidity and its inclusion in the US Digital Asset Stockpile, according to TradingView data.

The decrease comes despite Solana (SOL) being one of the three altcoins included in US President Donald Trump’s Digital Asset Stockpile, alongside Cardano’s (ADA) and XRP (XRPUSD).

Moreover, Solana has been unable to break this downtrend despite seeing over $9.5 billion worth of newly minted USDC (USDCUSD) stablecoins since Jan. 1, 2025, according to crypto intelligence platform Lookonchain.

Some analysts suggest that the newly minted liquidity has flowed into memecoins rather than boosting SOL’s price.

SOL is currently down 49% since the launch of Trump’s Official Trump (TRUMP) token, from $261 on Jan. 18 to $133 on March 9.

During the Trump coin launch, “most of the inbound liquidity was outflow from other crypto assets, people selling their crypto portfolio to buy TRUMP in extreme FOMO [fear of missing out],” Dan Hughes, founder of the decentralized finance platform Radix, told Cointelegraph.

Solana’s price decrease comes during a wider market downturn that saw the total market capitalization of all cryptocurrencies fall nearly 17% since the beginning of 2025.

Investors seek safety as Solana faces capital outflows

Part of Solana’s downtrend may also be attributed to investors seeking safer assets following the recent wave of memecoin scams.

Solana was hit by over $485 million worth of outflows in February, with investor capital mainly flowing to Ethereum, Arbitrum and the BNB Chain.

The capital exodus came amid a wider flight to “safety” among crypto market participants, according to a Binance Research report shared with Cointelegraph.

“Overall, there is a broader flight towards safety in crypto markets, with Bitcoin dominance increasing 1% in the past month to 59.6%,” the report stated.

”Some of the capital flowed into BNB Chain memecoins, driven in part by CZ’s tweets about his dog, Brocolli,” it added.

Disappointment in Solana-based memecoin launches has also curbed investor appetite, particularly after the launch of the Libra token, which was endorsed by Argentine President Javier Milei.

The project’s insiders allegedly siphoned over $107 million worth of liquidity in a rug pull, triggering a 94% price collapse within hours and wiping out $4 billion in investor capital.