Solana Plunges 9.3% Amidst Market Sentiment Shift and LIBRA Controversy

Solana, a prominent cryptocurrency, experienced a significant price drop of 9.3% within a 24-hour period, sparking controversy among investors and analysts. As of the time of this report, Solana's price point stood at $169.22, marking a substantial decline from its previous levels.

The price drop is attributed to a combination of factors, including a shift in market sentiments and the ongoing controversies surrounding the LIBRA project. LIBRA, which has been linked to former U.S. President Donald Trump's political resources, has faced criticism and regulatory scrutiny, potentially impacting the broader cryptocurrency market.

The sell-off in Solana has been particularly notable, with the coin falling by approximately 85% from its peak. This rapid decline has raised concerns among investors, who have witnessed a significant reduction in the number of genuine buyer addresses. According to Ali Martinez, a renowned cryptocurrency analyst, the number of buyer addresses has decreased from 18.5 million to just 8.4 million over the past 3.5 months.

As Solana faces this challenging period, traders are hoping for a positive movement around spot ETF approval, which could potentially provide some traction for the coin's price. However, the upcoming supply of new Solana tokens from February to April may exacerbate the inflation rate, currently at 4.715%, and further deplete the per-coin price value.