Solana: Will a $250M USDC injection spark SOL’s rebound?

• Solana has seen a complete of 8.75 billion USDC minted because the 1st of January. 
• Has it impacted SOL?

Solana [SOL] started February with a market cap above $100 billion, however at press time, it has declined to $72 billion.

Persistent sell-side stress has outweighed demand, forcing SOL under the $140 help – its lowest stage in 4 months.

With 250 million USDC freshly minted on the community, can elevated liquidity catalyze a restoration?

Solana’s liquidity pressure 

For the reason that New Yr, 8.75 billion USDC have been minted on Solana, driving community quantity to an all-time excessive of $27.745 billion – coinciding with the TRUMP memecoin launch.

Nonetheless, quantity has since retraced sharply to only $1 billion, whereas main Solana-based memecoins have recorded double-digit losses. 

Supply: DeFiLlama

This sharp decline suggests liquidity saturation, probably signaling exhaustion in SOL’s latest rally. 

With meme-sector volume down over 50%, the just lately minted 250 million USDC could have a diminished impression, limiting SOL’s upside potential.

As extra SOL liquidity floods the market amid fading memecoin demand and declining commerce quantity, the rising supply-demand imbalance raises considerations that Solana could also be shifting from a long-term worth asset to a short-term speculative play.

Fundamentals vs. hypothesis — The place does SOL’s future lie?

Since hitting its ATH of $295, SOL has remained in a sustained downtrend, failing to ascertain sturdy help at key retracement ranges – in contrast to its rivals.

In earlier cycles, SOL broke key resistance ranges on election and memecoin-driven “hype”, however the absence of sturdy demand in bearish situations now indicators a fragile market construction.

Supply: TradingView (SOL/USDT)

Weak bid-side liquidity continues to restrict bullish absorption of promote stress, placing the $140 help stage in danger.

A brief squeeze triggered $2.37 million in liquidations, suggesting the latest rally is basically speculative slightly than basically pushed. 

With Solana’s fundamentals exhibiting no vital enchancment, the impression of the 250 million USDC stays negligible.

As a substitute of a liquidity-driven rebound, SOL faces the next chance of retracing towards $125.