Solana saw nearly $500 million last month as investors moved to what was perceived as a safer digital asset, reflecting the growing uncertainty of the cryptocurrency market.
Solana (Sol) has experienced more than $485 million in outflows over the past 30 days, with investor capital flowing primarily into Ethereum, arbitrum and BNB chains.
According to a Binance research report shared with the Cointelegraph, the capital’s Exodus came in a wider flight to “security” among participants in the crypto market.
Solana Outflows. Source: Debridge, Binance Research
“Overall, there is a broader flight to the security of the crypto market, with Bitcoin dominance rising by 1% over the past month to 59.6%,” the report said.
“Part of the capital has flowed into the memokine of the BNB chain, and partially driven by CZ’s tweets about Brocolli about his dog,” he added.
Beyond Solana, the total number of cryptocurrencies’ market capitalization fell 20% in February, driven by an increase in negative sentiment, Binance Research said.
In addition to macroeconomic concerns, the decline in sentiment among crypto investors was largely due to the $1.4 billion bi-bit hack on February 21, the biggest exploit in crypto history.
Disappointing at the launch of Solana-based Memecoin has curtailed investors’ desires, particularly after the launch of the Libra Token, approved by Argentine President Javier Mailey.
The project’s insider is said to have sucked up more than $107 million in liquidity with a rag pull.
Source: Kobeissi Letter
“Mimecoin has evolved from a community-driven social experiment into a chaotic landscape dominated by value extraction from retail investors,” said Anastasija Plotnikova, co-founder and CEO of blockchain regulator Fideum.
“Insider Ring, Pump and Dump Scheme and Sniper Groups are replacing the organic, collectible nature of the original Memocoin, creating an unhealthy arena.”
Related: Bibit Hackers May Be Behind Solana Memo Coin Scam – Zachxbt
Stablecoins, Rwas hit record high amid market uncertainty
Stablecoins and Real World Assets (RWAS) rose to an all-time high as investors’ capital continued to flow to more predictable assets at stable price or yield generation mechanics.
stablecoins, rwas values. Source: Binance Research
Stablecoins surpassed records and exceeded $224 billion, while Onchain RWAS surpassed its cumulative record high of $17.1 billion with 82,000 asset owners, the Cointelegraph reported on February 3.
Related: Solana sees a 40% reduction in user activity as MemeCoin lag is eroding
Binance Research believes this capital rotation is attributed to recent market turbulence.
“The crypto market has become roughly February, influenced by macroeconomic factors such as escalating trade tensions and lower expectations for interest rate cuts. In such an environment, investors may choose to remove chips from the table and retain stubcoin as an alternative.”
More uncertainty in global risk assets such as Bitcoin (BTC) and cryptocurrencies could drive RWA to a height of $500 billion in 2025, P2P.ORG Chief Revenue Officer Alexander Loktev told Cointe Leger.
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