Saros (SAROS) Plunges 70%: Unpacking the Sudden Crypto Collapse

Another day, another crypto bloodbath—Saros just got shredded.

The Solana-based DeFi token nosedived a brutal 70% in hours, vaporizing gains and leaving traders scrambling. No slow bleed here—this was a straight-off-the-cliff drop that caught everyone off guard.

So what triggered the freefall?

Market whales dumped hard. Massive sell orders flooded thin liquidity pools, amplifying the crash. Then panic selling kicked in—retail investors followed the smart money straight out the door.

Tokenomics didn’t help. No major utility update, no partnership news—just pure speculative air coming out of the balloon. Classic crypto: pump hard, dump harder.

And let’s be real—when a token drops 70% in a day, it’s not a ‘correction.’ It’s a reckoning. Maybe the ‘fundamentals’ everyone loves to cite weren’t so solid after all. But hey, in crypto, fundamentals are just what people yell before the crash.

Stay sharp—or get rekt.

Why Did SAROS Token’s Price Crash? 

For context, Saros is a decentralized finance (DeFi) platform built on the solana (SOL) blockchain. It combines a wide range of services into a single ecosystem, including trading, staking, yield farming, launchpad participation, and more. 

Its native utility token, SAROS, powers governance, staking, liquidity incentives, and more. The token is deployed on both Solana and Viction.

The altcoin, which has a market cap of $922 million, has been on a predominantly upward trend for months and reached an all-time high (ATH) on August 04. 

However, yesterday’s 70% crash hindered this upward trajectory, pulling the price shortly back to four-month lows. Market data showed that SAROS’ price dipped to $0.109, a level last seen in April.

Nonetheless, the dip was brief. SAROS bounced back and reversed its losses. At the time of writing, it was trading at $0.35, down 5.3% over the past day. 

Thanh Le, founder of  Saros, addressed recent price volatility. He explained that the sharp moves in SAROS resulted from Leveraged traders reducing their positions on centralized exchanges, which caused open interest to fall sharply.

“Based on our ongoing investigations and available data, we believe this is a market-driven adjustment, potentially involving a large, highly-leveraged position reducing its exposure on centralized exchanges (CEX). Prior to the movement, open interest was approximately 90M SAROS, according to exchange data, and it has since decreased to around 20M SAROS,” he said.

He stressed that neither the team nor long-term investors sold their holdings.

“Market cycles come and go, but our focus stays the same: building Saros into the liquidity backbone of Solana. Your trust and support are what drive us, and we’ll continue to keep you informed every step of the way,” Le added.

Despite this, the major crash caused many traders to lose money and shook the market sentiment. CoinGecko data showed that over 50% of the community is bearish on SAROS.

Welcome to crypto

Never trade without a Stop-Loss! No matter how much profit you’re sitting on, one sudden MOVE can wipe it all out.

Just look at #SAROS — 142 days of gains erased in a single day dump.
Risk management > Hype. pic.twitter.com/mlnhh4WY9v

The volatility has reignited comparisons to OM, which experienced a 90% crash in April and has yet to recover completely.

“It’s going to keep falling for at least 1-2 years now…Whatever I said about OM before came true, and now whatever we said about Saros came true too,” an analyst remarked.

Surprise surprise$SAROS https://t.co/3ZzVDv4k3a pic.twitter.com/f5VU52pyEY

Thus, this incident highlights the broader risks within the altcoin market. While SAROS has shown some recovery, the price drop has left many questioning the market’s stability. Now, the community will watch closely to see how Saros navigates this setback.