Solana Price Drops on 5th Anniversary – What’s Causing the Crash?

Table Of Contents

Why Is Solana ($SOL) Falling Despite Celebrating 5 Years?
Solana Price Tumbles on Its Big Day – What’s Going On?
Why Is Solana Price Dropping? Key Reasons Behind the Dip
Is a Solana Recovery on the Horizon?
Solana Price Forecast – What’s Next for SOL?
What’s Ahead for Solana After 5 Years?

Why Is Solana ($SOL) Falling Despite Celebrating 5 Years?

Solana just marked its 5-year anniversary since its launch in 2020 — a major milestone for one of the fastest blockchains in the crypto space. Over the years, Solana has processed over 408 billion transactions, onboarded 1,300+ validators, and facilitated nearly $1 trillion in DEX trading volume.

Co-founder Raj Gokal highlighted^z this achievement, urging developers to build more on the network. However, the celebration was overshadowed by a sharp price dip, leaving investors asking: Why is Solana down today?

Solana Price Tumbles on Its Big Day – What’s Going On?

While the community commemorates Solana’s journey, SOL price has slipped by 4.80% in the past 24 hours, currently trading at $129.09 with a market cap of $65.83 billion. Interestingly, trading volume surged by 45%, indicating heightened market activity amid the volatility. In the last two months, SOL has fluctuated between $294.33 and current levels, making investors cautious.

Why Is Solana Price Dropping? Key Reasons Behind the Dip

Failed Inflation Proposal (SIMD-0228)
A recent governance vote aimed at reducing Solana’s inflation rate by 80% failed to pass. The proposal got 61.4% support, just short of the 66.67% needed for approval.
- Supporters hoped lower inflation would make SOL more scarce and valuable long-term.Opponents feared lower rewards would hurt staking participation.
The divided sentiment triggered uncertainty and short-term selling pressure in the market.
Broader Crypto Market Correction
The overall crypto market is also in decline. The global market cap dropped 0.92% to $2.73 trillion, and the Crypto Fear & Greed Index fell to 32, signaling rising fear among investors.

Is a Solana Recovery on the Horizon?

Despite the price dip, there’s growing optimism for a bounce back. On March 17, the Chicago Mercantile Exchange (CME) is set to launch Solana futures, with FalconX already executing the first block trade. This move signals institutional interest in SOL.

Analysts also believe that ETF approvals could follow, just like they did with Bitcoin and Ethereum. VanEck and Canary Capital are reportedly gearing up for SOL ETF applications — a development that could push Solana into the mainstream investment spotlight.

Solana Price Forecast – What’s Next for SOL?

According to crypto experts at CoinGabbar:

If SOL holds above $123, the price could rally towards $150–$180 in the short term.
A strong breakout may pave the way toward the $250 resistance zone in the medium run.

With a growing developer community, increasing DeFi activity, and potential institutional adoption, SOL remains a top contender for the next bull run. However, short-term fluctuations are likely — so keeping an eye on support/resistance levels is crucial.

What’s Ahead for Solana After 5 Years?

Many in the crypto space are anticipating a major announcement from the Solana team to mark its 5th birthday — potentially a development that could boost investor confidence and drive SOL price higher.

Despite the setback from the failed inflation proposal, the launch of futures trading and talks of ETF approval are promising signs. Whether you’re a trader or long-term investor, Solana’s next moves could be game-changing.