Solana (SOL) briefly surpassed the $180 mark after rebounding by 4.3% on Feb. 21, marking the first time the token has crossed this threshold since its slump following the LIBRA debacle. At its daily high, Solana reached $180.19 before retracting slightly to around $178.
Solana’s Recovery and Market Performance
According to data from crypto.news, Solana has risen by nearly 3% over the past 24 hours, currently trading at $178.79. However, the token remains down over 30% in the past month, reflecting a prolonged bearish phase. Solana’s market capitalization now stands at $87 billion, with a fully diluted valuation of $105 billion.
Beyond price recovery, Solana has also regained momentum in trading volume. According to DeFi Llama, Solana reclaimed the top spot among decentralized exchange (DEX) chains, recording $2.3 billion in volume. It surpassed Binance Smart Chain (BNB), Ethereum (ETH), and Base, regaining its dominance after briefly losing the position for two consecutive days post-LIBRA collapse.
Impact of LIBRA’s Collapse on Solana
The recent collapse of the Solana-based meme coin LIBRA, which was promoted by Argentinian President Javier Milei, had a severe impact on Solana’s ecosystem and the broader meme coin market. LIBRA’s price plummeted by 95% within the first few hours of its launch, erasing $4.4 billion in market capitalization.
Following LIBRA’s downfall, Solana’s liquidity suffered, with outflows surging from $12.1 billion to $8.29 billion, as reported by Nansen. The chain also experienced a sharp 15% decline in value, with investor sentiment wavering over the future of meme coin issuance and sustainability within the Solana ecosystem.
Looking Ahead
Despite the recent turmoil, Solana’s ability to bounce back above $180 signals resilience within its ecosystem. The blockchain’s regained position as the leading DEX chain reflects continued user confidence and adoption. While market volatility persists, Solana’s recovery will depend on liquidity stability and the network’s ability to withstand future disruptions.
