The Fall of Solana
Nathan Domfrocht
In late October and early November of 2025, the cryptocurrency Solana (SOL) experienced a significant price drop. Its value fell by almost 20% in the week leading up to November 5, 2025, and was down about 40% from its peak value in September of that same year. This downturn was not isolated to Solana; it was part of a larger, market wide correction that affected other major cryptocurrencies like Bitcoin and Ethereum as investors showed increased caution due to general economic uncertainty.
Solana specific issues also played a role. The highly anticipated launch of the first Solana Exchange Traded Funds (ETFs) in the U.S. became a "sell the news" event, where traders who had bought anticipated the decline, then sold their holdings once it happened.
This contributed significantly to the selling pressure. Additionally, after reaching an eight-month high, many investors engaged in profit taking, further driving down the price. The effect was compounded by leveraged liquidations, where traders using borrowed funds had their positions automatically sold by exchanges as the price fell, creating a cascading effect.
In October, reports of "sandwich attacks" that affected user transactions also surfaced, potentially causing some investors to doubt the network's security. While the issue was managed, the combination of these factors highlights the volatility of the cryptocurrency market. Solana's recent price action serves as a reminder that even with positive developments like the launch of ETFs, market sentiment and broader economic conditions heavily influence asset prices.
