Whales are selling Solana: why is the 58% crash linked to memecoins and early accumulation?

Solana is going through a turbulent period in the market. Since January 2025, the network has seen its native token steadily decline, registering a drop of over 58% to reach $122.04 according to recent data. This movement contrasts notably with the all-time high of $293 reached just a few months ago.

The whale mass sell-off: the hidden factor

According to analyst Ardi, much of this decline is rooted in a coordinated sell-off by large holders. Data reveals that weeks before Solana hit its peak, whales and institutional addresses had already begun to distribute their positions. This preventative move suggests that major players saw signs of exhaustion in the market.

Medium and institutional wallets have shown a significant decrease in network activity, reinforcing the theory that sophisticated investors have withdrawn from positions. Conversely, small investors maintain their presence on the network, demonstrating some resilience in retail activity levels.

The memecoin effect on Solana’s decline

The memecoin ecosystem on Solana has played a crucial role in this dynamic. The launch of the $TRUMP token in January coincided with Solana’s most volatile period, attracting speculative capital that was previously in core Solana positions.

The correlation is clear: when memecoins experience sharp declines, Solana tends to follow the downward movement. This interconnection reveals how the behavior of speculative assets on the network can contagiously influence the price direction of the main token.

Broader perspective

On an annual basis, Solana records a decline of 38.21%, reflecting macro pressures that have affected the crypto market overall. However, the combination of whale distribution, rotation into memecoins, and reduced institutional activity suggests that the local scenario adds additional layers of complexity to the price movement.