Solana (SOL) faces a sustained downturn after a strong start to 2025. Having reached an all-time high of $293.31 in January last year, the asset has since declined significantly, with its price dropping 51.9% over the past year according to recent data. The broader cryptocurrency market’s loss of momentum, attributed to macroeconomic pressures, has investors questioning whether to hold or sell their SOL holdings.
Solana’s price has decreased 0.9% in the last 24 hours and 12.5% over a 14-day period. CoinGecko statistics also show a 4.8% drop over the previous month.
The wider crypto market has lost much of its sparkle since the end of 2025. Solana came close to hitting the $100 mark earlier this month but failed to break through.
The larger market downtrend is attributed to macroeconomic pressure and geopolitical tensions. High bond yields and rising crude oil prices have led to higher inflation figures.
This move has diminished the chances of an interest rate cut. Many were hopeful the new Federal Reserve Chair, Kevin Warsh, would reduce rates after assuming office.
However, high inflation may keep rates unchanged, if not hiked. The asset has a good track record of bouncing back despite recent suffering.
Solana fell to below $10 after the collapse of FTX in 2022. Since its 2022 lows, SOL has hit multiple new all-time highs.
Moreover, the cryptocurrency market is cyclical. This has been seen multiple times over the last few years.
While the market is down right now, it will most likely regain momentum once the larger economy improves. Hence, investors could hold their Solana for the time being and not sell for a loss.
