Solana and XRP Prices Take a Tumble: What’s Behind the Crypto Crash?

Market turbulence hits Solana and XRP as scandals and regulatory
uncertainties shake investor confidence.

Solana’s Descent: Political Scandals and Memecoin Mayhem

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.

In a new development, an Argentine judge was assigned to investigate President Javier Milei’s role in promoting a cryptocurrency that crashed https://t.co/z9C0uJbzlB pic.twitter.com/k1ofHjKF1w

— Reuters (@Reuters) February 18, 2025

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 $520 by the end of 2025 if the current turbulence subsides
and institutional interest remains strong.

XRP’s Slump: Regulatory Rollercoaster and Political Letdowns

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.

Trump just posted about #XRP. I checked it out. It’s still there 🚀 pic.twitter.com/XTlg8MQJQM

— CryptoBull (@CryptoBull2020) February 19, 2025

One of the biggest hopes for XRP was the approval of an XRP
Exchange-Traded Fund (ETF), which would have allowed institutional investors to
gain exposure to XRP without directly buying the token. While analysts believe
an approval could lead to huge inflows, the SEC has so far delayed any clear
decision.

Adding to XRP’s troubles is the Trump administration’s unpredictable
stance on crypto regulation. While candidate Trump hinted at potential
pro-crypto policies—at one point even teasing a Bitcoin
strategic reserve—his government’s actions so far have been lackluster. In
fact, Trump’s new round of tariffs on Canada, Mexico, and China has triggered
broader market fears, leading to a general risk-off sentiment in crypto.

The ETF Tease: Hope on the Horizon?

Despite the bearish sentiment, some crypto bulls argue that XRP and
Solana still have a chance to recover, thanks to potential ETF approvals.

💥JUST IN: 🇺🇸 SEC acknowledges filing for Bitwise spot $XRP ETF. pic.twitter.com/KVAygLPYrS

— Amonyx (@amonbuy) February 18, 2025

Regarding XRP, the SEC is reviewing multiple ETF applications from Grayscale,
Bitwise, and more, and if approved, institutional investors could potentially inject
vast sums. High levels of liquidity could significantly reverse the current
downward trajectory.

Solana, too, has ETF potential, with investors showing interest in
bringing a regulated Solana fund to the market. If approved, an ETF could help restore
confidence in the ecosystem and push Solana higher. However, given recent
controversies, regulators may be hesitant to greenlight anything related to
Solana in the near term.

Proceed with Caution

While some long-term investors remain hopeful, the short-term outlook
for Solana and XRP remains volatile.

Solana’s price may continue to feel the aftershocks of the LIBRA
scandal, especially if the lawsuits against Milei gain traction. If more
memecoins on Solana collapse, investors may start questioning the network’s
ability to support long-term, serious projects.

XRP, on the other hand, is still caught in the regulatory crossfire.
The SEC’s stance on crypto remains unpredictable, and until XRP gets clear
regulatory approval—particularly in the form of an ETF—its price may remain
stagnant.

For now, crypto investors should brace for more turbulence. Between
political scandals, regulatory hurdles, and global market jitters, the coming
months could be make-or-break for Solana and XRP.

One thing is clear: crypto is never boring.

This article was written by Louis Parks at www.financemagnates.com.