- Solana’s price is dropping fast as big treasury firms lose value, making large investors pull back and confidence fall.
- Several Solana-linked companies have crashed hard after quick gains, showing risky trading and unstable market behavior.
- Digital asset treasuries are losing strength, raising fears that the crypto rally could be slowing down for now.
Solana’s market is under heavy strain as institutional demand sharply declines, triggering renewed selling pressure across the ecosystem. According to analyst Ted on X, “Solana treasury companies are in free fall right now. This is a primary reason behind the $SOL dump, as the institutional bidding has almost stopped.” The decline in confidence from treasury-linked firms is now driving significant uncertainty in the Solana market.
Besides, Forward Industries has been depositing large amounts of SOL onto exchanges, fueling more selling. Consequently, traders are becoming cautious as liquidity inflows weaken. The ongoing activity signals reduced institutional participation, which often stabilizes token prices during volatile phases. However, the broader market sentiment remains fragile as treasury companies linked to Solana record steep value declines.
Treasury Companies Experience Sharp Volatility
The recent market performance of major Solana-linked treasury firms underscores the scale of instability. Forward Industries Inc. experienced an explosive rally from around $9 to $46 before crashing to $24.69. Similarly, Sol Strategies Inc. surged from $10 to $45 in early 2025 but collapsed to $4.44, marking a 90 percent drop.
Moreover, Sharps Technology Inc. rose from $7 to $19 between August and September, then slid to $5.15. DeFi Development Corp. also faced resistance, climbing to $16 before retreating to $13.79 after multiple failed breakouts.
Additionally, all four companies displayed identical trading behavior—rapid appreciation followed by deep declines. Each rally was accompanied by volume surges, indicating high levels of speculative activity. As a result, the stock charts imitate traditional pump-and-dump cycles, when momentum diminishes as liquidity evaporates. Their charts are currently dominated by red candles, which indicates persistent selling pressure in the industry.
Digital Asset Treasuries Under Scrutiny
Digital asset treasuries (DATs) have emerged as a defining feature of the ongoing crypto bull market. These entities accumulate cryptocurrencies like Bitcoin or Solana and issue publicly traded shares tied to those assets.
However, the growing number of DAT projects has raised fears of oversaturation. Tom Lee, chairman of BitMine, warned that “the bubble might already have burst,” echoing widespread industry caution. Moreover, the collapse of key DAT stocks has intensified debate over their sustainability amid falling crypto valuations.
