February 18, 2025 – (New York) The cryptocurrency market was faced with a net slowdown on Tuesday, with Solana (ground), XRP, Dogecoin (Doge) and Binance Coin (BNB) losing between 3% and 6% of their value as a larger market has embittered. The total market capitalization of the crypto dropped by 3%, even if Bitcoin (BTC) was stable above the $ 95,000 mark, consolidating its recent earnings.
The decreases were motivated by a combination of negative events on the market, including scandals involving tokens even library and Melania, and JPMorgan’s comments, which raises concerns about the role of Tether on the market. These developments have shaken investor confidence, especially in altcoins.
Solana led the losses among the major cryptocurrencies, down 5.31% while traders were preparing for a significant token unlocking event. Nick Forster, founder of Derive.xyz, stressed that Solana faces a unlocking of $ 2 billion in the coming weeks – 2% of its fully diluted value – which should exert downward pressure on its price. “We find a chance of 10% of the chances that Sol is more than $ 280 by the end of the quarter, and a 20% chance to fall below $ 170,” said Forster.
Meanwhile, XRP and Dogecoin experienced 2.97% and 2.59% corrections, respectively, because the metrics in chain indicated a continuous downward momentum. The active addresses of XRP have been down, and its funding rate has become negative several times in the last three weeks, signaling the lowering feeling among derivative traders.
The market value ratio of the market value of Dogecoin (MVRV), a key indicator of price corrections, has also raised concerns. The current level of MVRV of 15% suggests an additional drop potential, because historical models show that a drop below 7% often triggers significant price reductions.
The unresolved controversies surrounding the Balance and Melania tokens, which were linked to wallet addresses, added to the Balance and Melania tokens, which were linked to addresses that withdrew more than $ 100 million. The balanced token, promoted by Argentinian president Javier Milei, and the Melania token threw a shadow on Solana’s blockchain, where they were both delivered. This caused a broader loss of confidence among traders, reflected in the Crypto Fear & Greed index, which fell from “extreme greed” last month at a neutral level.