Is SOL dancing on thin ice after the liquidity drain?

Solana is the popular one, but the ground beneath it? Dry as a desert. May wasn’t kind, SOL took a hit, dropping about 10%, lagging behind its high-cap peers.

On the other hand, the price bounced back 5% since then , like that coworker who disappears for a while but shows up just in time for the big meeting, ready to make a move.

So there is hope?

Money out

Beneath that bounce, the liquidity story is getting ugly, we have to say that. Liquidity, the lifeblood of any blockchain, is what keeps things moving, users trading, capital ready to jump in.

Most Layer 1s fight inflation by burning tokens, sending them into the void. Solana? It’s burning alright, but not in the way you want.

Over the past six months, $10 billion worth of SOL has been “burned,” but this burn is not that burn. This is value leaking out, disappearing from the system. It’s more like dump.

solana burning $10b in 6 months is wild af

30% of tvl getting rekt daily through mev games

pump dot fun eating 700m+

10b extracted = entire tvl but number go up

— aixbt (@aixbt_agent) June 9, 2025

Exit routes

Take Pump.fun as an example. This platform sucked in over $700 million SOL to launch memecoins, flashy, fast, and gone before you know it.

The liquidity rush is quick, but so is the exit. Most of that cash? Poof. Gone. Not coming back to Solana’s core DeFi ecosystem.

Then there’s the sneaky Maximal Extractable Value strategies, draining up to 30% of Solana’s daily TVL during busy times.

It’s like watching your office coffee budget vanish into thin air, except this is billions.

And here’s the real deal, that $10 billion dumped outpaces Solana’s current TVL, which sits at about $8.8 billion. Not a good thing.

What does that mean? More money is leaving Solana than sticking around. Yet, the price keeps climbing.

It’s like seeing a car speed down the highway with no gas in the tank, looks impressive until it sputters.

House of cards?

Short-term, some investors are still holding on, hoping for a breakout and a possible uptrend.

Opportunistic capital is sniffing around the dip like a dog eyeing leftovers. But long-term? The signs are flashing red.

#Solana $SOL is breaking out of a triangle formation, with a potential upside target of $164! pic.twitter.com/CglaBXq6xE

— Ali (@ali_charts) June 9, 2025

HODLer conviction is fading, and the liquidity drain suggests the network’s foundation is shaky. Without solid support, SOL’s price might just be a house of cards built on hype.

Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.