From financemagnates by Louis Parks
Market turbulence hits Solana and XRP as scandals and regulatory uncertainties shake investor confidence.
Solana (SOL) has had a rough start to 2025, plunging more than 40% in just a month. The primary driver behind this decline? A perfect storm of political scandal, market sell-offs, and the lingering volatility of memecoins.
The trouble started when Argentine President Javier Milei openly endorsed LIBRA, a Solana-based memecoin that quickly became a cautionary tale in the crypto world. What initially seemed like a strong show of support from a sitting world leader turned into a nightmare when LIBRA’s market cap plummeted from $4.5 billion, losing 90% of its value. The project turned out to be a textbook pump-and-dump, leaving many retail investors empty-handed.
This spectacular collapse triggered a wave of sell-offs across the Solana network. Solana had already been riding high after a strong performance in late 2024, but the memecoin fiasco shattered investor confidence. Adding fuel to the fire, Milei himself is now facing legal action, with multiple lawsuits filed by Argentine lawyers alleging financial misconduct related to the LIBRA scandal.
Despite the chaos, some analysts remain optimistic, arguing that Solana’s fundamentals remain strong. VanEck, Bitwise, and Pantera Capital have all suggested that that SOL could still rally, with VanEck claiming it could reach to $520 by the end of 2025 if the current turbulence subsides and institutional interest remains strong.
If Solana’s downfall was fueled by scandal, XRP’s woes stem from regulatory uncertainty and political letdowns.
XRP, which had a promising start to 2024, has dropped 3.6% to $2.59, marking a 19% decline over the past month. Much of this decline has been attributed to a mix of SEC-related concerns and fading optimism around crypto-friendly policies from the new Trump administration.