Tariff fears wipe out SOL’s weekend gains
On the news that SOL would be part of Trump’s upcoming strategic reserve, SOL quickly surged before seeing an equally swift retracement
Jihan Fahri/Shutterstock modified by Blockworks
This is a segment from the Lightspeed newsletter. To read full editions, subscribe.
It’s been three days since President Donald Trump’s surprise news that SOL would be part of his upcoming US crypto strategic reserve. If that happens (and frankly it remains a big “if”), the inclusion will place {{SOL}} alongside {{BTC}}, ETH, XRP, and {{ADA}} in a government-held reserve of digital assets.
SOL quickly surged to a local high of $178 on the news, followed by an equally swift retracement. Too much adrenaline for a Sunday. Without a clear timeline for implementation, short-term traders took their exit, leaving SOL to settle around $141 at time of writing.
Still, let’s not be dramatic. That’s a 10% gain from its $128 price right before the announcement. Not bad, considering how rough the market was looking in the lead up.
Zooming out, SOL has also been tossed around by broader market turbulence. The escalating US trade war — with tariffs on China, Mexico and Canada triggering countermeasures — has created uncertainty, pressuring equities and risk assets, including crypto. Bitcoin, which hit $95,000 on the Trump news, has since slumped to $88,400, reinforcing crypto’s continued correlation with macro conditions.
Meanwhile, Solana-specific factors have likely influenced its pullback. Onchain activity has cooled. Active addresses have dropped from 18.5 million in November to 8.4 million by late February. Much of last year’s memecoin hysteria has also waned, with pump.fun seeing a 63% drop in trading volume last month.
Despite the retrace, big money interests don’t seem particularly spooked, and institutional interest in SOL remains strong. The CME recently announced plans to launch Solana futures on March 17. This should attract hedge funds and institutional traders who have been waiting for a more regulated way to get exposure.
So where to now? I’d bet on stabilization before another push to $160-$180. But if the sell pressure drags us below our current levels, we’re looking at $125 as the next real floor. Either way, expect more volatility. Nothing happens quietly in Solana.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: Unpacking crypto and the markets.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
