Solana faces $485M outflows amid crypto market turmoil

Solana (CRYPTO:SOL) experienced significant outflows in February, with nearly half a billion dollars leaving the network as investors sought safer assets.

This capital flight was driven by a combination of macroeconomic uncertainty, the largest-ever hack in crypto history, and a downturn in Solana-based memecoin projects.

The $1.4 billion Bybit hack on February 21 contributed to a broader flight to safety in the crypto market, with Bitcoin's dominance increasing by 1% to 59.6% over the past month.

Investor capital primarily flowed to Ethereum (CRYPTO:ETH), Arbitrum (CRYPTO:ARB), and the BNB Chain, reflecting a preference for perceived stability.

Disappointment in Solana-based memecoins, particularly the Libra token endorsed by Argentine President Javier Milei, further eroded investor confidence.

The Libra project was marred by a rug pull, where insiders allegedly drained over $107 million, leading to a 94% price collapse and wiping out $4 billion in investor capital.

"Memecoins have evolved from community-driven social experiments into a chaotic landscape dominated by value extraction from retail investors," noted Anastasija Plotnikova, CEO of Fideum.

This shift has created an unhealthy environment, with insider rings and pump-and-dump schemes replacing the organic nature of original memecoins.

In response to market uncertainty, stablecoins and real-world assets (RWAs) reached all-time highs.

Stablecoins surpassed $224 billion, while on-chain RWAs exceeded $17.1 billion, as investors sought more predictable assets.

This trend may continue, with RWAs potentially reaching $50 billion in 2025 as investors seek stability amid global economic uncertainty.

At the time of reporting, the Solana (SOL) price was $148.21.