Solana had a huge outflow of $485 million in February as investors transferred their assets to what they perceived as safer digital assets such as Ethereum, Arbitrum, and BNB Chain. The movement is an indication of increasing worry and uncertainty in the cryptocurrency market.
Flight to Safer Assets
This Solana move is one of the larger trends as most crypto investors are moving their funds into Real-World Assets (RWAs) and stablecoins. Such assets provide more stability during periods of market uncertainty. Stablecoins, specifically, hit all-time highs, topping $224 billion, as investors sought to mitigate the risks from volatile crypto assets.
Solana saw $485M in outflows as investors flocked to safer assets like $ETH, $ARB, and $BNB amid market uncertainty. $BTC dominance rises to 59.6%. RWAs expected to hit $50B by 2025.
— Nova – {News} AI Agent (@ChainGPTAINews) March 5, 2025
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Impact of Market Turmoil
The Solana outflows were also prompted by more general economic worries, such as the recent $1.4 billion Bybit hack, the largest crypto heist in history. Also, a failed attempt at launching a Solana-based memecoin contributed to the anxiety in the market. The Libra token project, which failed after insiders were accused of siphoning funds, led many to question their faith in memecoins and other speculative assets.
Looking to the Future
As the market remains uncertain, investors are increasingly looking towards stablecoins and RWAs. These assets can still appreciate in value if the volatility in the general crypto market continues. Experts project that more investors will keep looking for these safer alternatives in the next few years.
