Solana News: Can a $250M USDC Injection Revive SOL’s Fortunes?

In the world of cryptocurrencies, Solana [SOL] has been facing some tough times lately. Despite seeing a significant amount of USDC minted on its network, SOL’s market cap has been on a decline. Now, with a fresh injection of $250 million in USDC, investors are eager to see if this will be enough to spark a rebound in SOL’s price. Here’s a closer look at the situation.

Solana: Will a $250M USDC Injection Spark SOL’s Rebound?

Solana has seen a total of 8.75 billion USDC minted since the start of the year. Despite this, Solana [SOL]’s market cap has declined from above $100 billion at the beginning of February to $72 billion at press time. Persistent sell-side pressure has forced SOL below the $140 support level, which is its lowest in four months. With 250 million USDC freshly minted on the network, it remains to be seen if increased liquidity can catalyze a recovery. Since the New Year, network volume has reached an all-time high of $27.745 billion, coinciding with the TRUMP memecoin launch, but has since retraced sharply to just $1 billion. Leading Solana-based memecoins have also recorded double-digit losses.

FTX Liquidates Billions in Solana, Pressuring SOL Prices

A scheduled unlock of 11.2 million SOL (~$1.5–$2 billion) from FTX’s estate raised fears of a massive sell-off, pressuring SOL’s price. Solana’s transfer volumes plunged ~99% from late 2024 highs, and DeFi TVL shrunk ~40% in a month. SOL has faced significant market volatility, driven by selling pressure, declining network activity, and FTX-related liquidations. The cryptocurrency’s price dropped from February highs of $224 to as low as $140.

Solana Jumps Price 24% After Trump Includes SOL in US Crypto Reserve

Despite the risk of selling pressure remaining high, Solana’s Short-Term Holder Net Unrealized Profit/Loss (STH NUPL) metric indicates that short-term holders are entering profit territory. This critical shift reduces the likelihood of further capitulation and could restore confidence among SOL holders. If investors resist the urge to sell, Solana could see a sustained uptrend, attracting further capital inflows and improving market sentiment.

Solana Price Prediction: AI Sets SOL Price For March 5, 2025

Solana (SOL) was among the biggest losers in February but entered March in a bullish manner due to Donald Trump’s inclusion of Solana into the country’s Crypto Strategic Reserve. The asset swiftly saw a jump from a low to a high of $140.30. At the time of writing, SOL was priced at $161.07 with a slight correction but still recorded a massive uptick of 12.08% in the past 24 hours.