The price of Solana ($SOL) is up by only 1% this year as the native asset of the smart contracts platform has struggled to stay positive despite the positive tailwind that it received after President Donald Trump chose its blockchain to mint his official meme coin.
In the past 7 days, the token has faced significant selling pressure and dropped by 20.5% as the value of meme coins experienced a huge decline.
This segment of the crypto market is particularly important for Solana as meme coin minting protocols like Pump.fun drive significant transaction volumes to the network. If interest in these digital assets scales down, it could prompt a decline in the price of $SOL.
Moreover, the launch of $TRUMP evidenced that the network still struggles to keep up during peak usage periods. The crypto exchange Coinbase was forced to issue an apology as thousands of Solana transactions experienced delays and so on.
To solve this issue, a group of developers has launched a layer-two scaling solution called Solaxy ($SOLX) that is designed to bundle transactions offline to alleviate the mainnet’s burden.
Its presale event has been widely successful, as the protocol has already raised $18.4 million less than two months after its launch.
Solana Could Bounce After Touching the $170 Level
The price of Solana has been confined in a price channel since its January peak. However, the token experienced a decline after it failed to stay above the $270 level for multiple days.
Now, $SOL is rapidly approaching a key support area within the $170 and $175 levels that could serve as a floor for this pullback. In the traditional markets, a drop of this magnitude – 35% below all-time highs – would be considered a crash.
However, the crypto market tends to experience much more pronounced drops during bearish cycles.
The daily chart shows that the price is still standing a bit above the pre-election closing price. It would be hard to see the price falling below these levels as Trump’s arrival to the presidency is one of the most bullish events that have occurred in the past year amid his pro-crypto agenda.
Also read: Best Solana ICOs and Presales to Invest in February 2025
This $170 – $175 should hold nicely in the next few days and could open up the door for late buyers to enter $SOL at a much more affordable price.
Solaxy ($SOLX) Breaks Solana’s Chains to Support a New Era of Growth
The rise of meme coins and the expansion of Solana’s decentralized finance (DeFi) ecosystem has put pressure on the mainnet’s efficiency.
Solaxy ($SOLX) would be the first layer-two network launched for Solana. Its pioneer status could drive significant demand for its native asset $SOLX, which currently offers staking rewards of 220%.
The project’s developers updated token holders in January and said that they had already advanced in the L2’s architecture. In addition, they announced a collaboration with Sovereign Labs to keep performing tests on the solution as they start to implement it on the mainnet.
At its discounted price of $0.001626, those who buy at this stage stand to reap the highest returns as $SOLX could skyrocket once it is listed on exchanges. However, the price increases in 11 hours to reward the most loyal supporters for trusting the project.
Last year, Pepe Unchained ($PEPU) – an L2 Ethereum scaling solution – delivered 700%+ returns to presale investors as it was picked up by MEXC and large other centralized exchanges shortly after the event ended.
To buy $SOLX, head to the Solaxy website and connect your wallet. You can swap ETH, USDT, or BNB, or use a bank card to complete the purchase.
