Solana noticed almost half a billion {dollars} in outflows final month as buyers shifted to what have been perceived to be safer digital property, reflecting rising uncertainty within the cryptocurrency market.
Solana (SOL) was hit by over $485 million value of outflows over the previous 30 days, with investor capital primarily flowing to Ethereum, Arbitrum and the BNB Chain.
The capital exodus got here amid a wider flight to “security” amongst crypto market members, based on a Binance Analysis report shared with Cointelegraph.
Solana outflows. Supply: deBridge, Binance Analysis
“Total, there’s a broader flight in direction of security in crypto markets, with Bitcoin dominance rising 1% previously month to 59.6%,” the report acknowledged.
”A number of the capital flowed into BNB Chain memecoins, pushed partly by CZ’s tweets about his canine, Brocolli,” it added.
Past Solana, whole cryptocurrency market capitalization dropped by 20% in February, pushed by rising unfavourable sentiment, Binance Analysis famous.
Alongside macroeconomic considerations, the crypto investor sentiment drop was primarily because of the $1.4 billion Bybit hack on Feb. 21, the most important exploit in crypto historical past.
Disappointment in Solana-based memecoin launches has additionally curbed investor urge for food, notably after the launch of the Libra token, which was endorsed by Argentine President Javier Milei.
The mission’s insiders allegedly siphoned over $107 million value of liquidity in a rug pull, triggering a 94% worth collapse inside hours and wiping out $4 billion in investor capital.
Supply: Kobeissi Letter
“Memecoins have advanced from community-driven social experiments right into a chaotic panorama dominated by worth extraction from retail buyers,” Anastasija Plotnikova, co-founder and CEO of blockchain regulatory agency Fideum, instructed Cointelegraph, including:
“Insider rings, pump-and-dump schemes, and sniper teams have changed the natural, collectible nature of unique memecoins, creating an unhealthy enjoying discipline.”
Associated: Bybit hackers could also be behind Solana memecoin scams — ZachXBT
Stablecoins, RWAs hit file highs amid market uncertainty
Stablecoins and real-world property (RWAs) rose to all-time highs as investor capital continued to move into extra predictable property with secure worth or yield-generation mechanics.
Stablecoins, RWAs worth. Supply: Binance Analysis
Stablecoins surpassed the file $224 billion excessive whereas onchain RWAs surpassed a cumulative all-time excessive of $17.1 billion throughout 82,000 asset holders, Cointelegraph reported on Feb. 3.
Associated: Solana sees 40% decline in consumer exercise as memecoin rug pulls erode belief
Binance Analysis attributed this capital rotation to the latest market turbulence:
“Influenced by macroeconomic elements comparable to escalating commerce tensions and diminished expectations of rate of interest cuts, the crypto market has had a tough February. In such an atmosphere, buyers might select to take chips off the desk and maintain stablecoins instead.”
Extra uncertainty in world threat property comparable to Bitcoin (BTC) and cryptocurrencies might drive RWAs to a $50 billion excessive throughout 2025, Alexander Loktev, chief income officer at P2P.org, an institutional staking and crypto infrastructure supplier, instructed Cointelegraph.
Journal: How crypto legal guidelines are altering internationally in 2025
