## Solana faces persistent downtrend: memecoin activities and institutional selling in focus

Solana is going through a challenging phase in the market. Since the beginning of 2025, the coin has experienced a significant decline of approximately 58.6%, retreating from its peak of $293 to the current $122.04. This negative performance over 12 months, with an accumulated retracement of 38.21%, highlights structural pressures beyond normal market fluctuations.

### Large holder selling dynamics

According to technical analyses, large holders of the network initiated an early distribution of their assets months before the peak. This movement suggests that certain institutional investors or early-stage players recognized signs of exhaustion and began to strategically reduce their positions. The gradual and precise sale of these substantial volumes contributes to ongoing pressure on prices.

### Impact of memecoin trends on the ecosystem

The memecoin phenomenon on Solana accelerated this downtrend. Launches like the $TRUMP token in January attracted speculative liquidity, diverting capital from more established assets. The subsequent decline of this token category coincided with sharper drops in SOL itself, creating a cascading effect in the market.

### Contradictory signals from network activity

While retail investors maintain relatively stable activity on the network, more concerning data emerges from institutional dynamics. Medium-sized wallets and large institutions show a notable decrease in network engagement, suggesting that selling pressures are not superficial but reflect a shift in participation strategies of more sophisticated players.