Solana Whales Sell $43.3 Million, Market Cap Drops 3.4%

Crypto whales have been actively offloading large amounts of Solana (SOL) tokens, creating significant selling pressure and casting doubt on the bullish target of $250 for the cryptocurrency. This trend has been exacerbated by the recent tariffs imposed by President Donald Trump, which have added to the market's uncertainty and volatility. The total market capitalization of digital assets has fallen below $2.64 trillion, marking a 3.4% decline. At the time of writing, Solana is trading at $122, reflecting a 6% increase over the past 24 hours.

Institutional demand for Solana has waned, leading to substantial outflows from centralized exchanges and decentralized finance (DeFi) protocols. On-chain data reveals that a holder sold 258,646 SOL, valued at approximately $30.3 million, while another transferred 80,000 SOL worth $9.47 million. These large transactions have dampened market sentiment, with additional sales of 30,000 SOL and 25,501 SOL worth about $3.53 million and $3 million, respectively. Retail holders have also joined the selling spree, pushing the price below earlier projections for the month. The downturn in the first quarter of 2025 had initially suggested a strong start to the second quarter, but the recent whale activity has left traders uncertain, especially with the anticipated approval of spot Solana ETFs.

The selling pressure has extended to Solana meme coins, with top assets experiencing significant weekly outflows. TRUMP has dropped 10.6% this week to $9.23, while BONK and FARTCOIN have declined by 13.7% and 15.8%, respectively. WIF has seen the largest exits, with a 22% decrease in the past seven days as overall market sentiment has plummeted.

The recent decline in the digital asset market is directly linked to the sweeping tariffs imposed by President Trump. Tech stocks, Bitcoin (BTC), and related assets have taken a hit as traders navigate the uncertain landscape. While the broader market cap has fallen by over 5%, some assets are expected to find stronger resistance below previous support levels. Altcoins like Solana and XRP, which are on the cusp of spot ETF approvals, could potentially reverse the downward trend. On-chain metrics suggest an upward trajectory despite short-term setbacks. Recently, XRP bulls have projected a price increase above $8 during the cycle peak, although the asset is currently trading at $2.04.