Solana, which soared on meme coins, now falling due to meme coin crisis... Bearish bets surge

Short positions betting against Solana (SOL) have surged in the futures market.

On the 17th (local time), cryptocurrency media CoinTelegraph reported, citing Coinalyze data, that the ratio between Solana long positions and short positions has sharply decreased from 4 to 2.5. The increase in short positions indicates that investors hold negative views on Solana's outlook.

Solana's price has also fallen in the spot market. As of 10:13 AM on the 18th, Solana is trading at $178, down 5.81% from the previous day according to CoinMarketCap.

'Meme coins' are cited as a factor behind investors' negative outlook on Solana. Crypto influencer Tyler Durden said through X (Twitter) that "the market is angry at Solana."

Previously, Solana gained popularity among investors as various meme coins like BONK and WIF emerged from its ecosystem. According to Messari, Solana's revenue increased by 213% in the last quarter, mostly generated from meme coins.

However, Solana has recently raised concerns among many investors as meme coins created on the Solana platform have become controversial. Notable examples include MELANIA, CAR (Central African Republic Meme), and LIBRA. These meme coins typically surge initially due to celebrity promotions but soon crash in price.

Most recently, LIBRA, which Argentine President Javier Milei personally announced through X (Twitter), has been at the center of controversy. President Milei introduced LIBRA as a "private project for Argentina," and its price quickly surged to $4.7. However, allegations of insider trading including sniping emerged, and the token price subsequently crashed by 95%.