Solana experienced a significant price drop of 8.5%, reaching $160.57 as the crypto market grappled with broader macro pressure and DeFi instability. The sell-off was triggered by losses in Stream Finance ($93 million) and rising bad debt within lending protocols, leading to heightened redemption risks for Solana’s $4.1 billion TVL (total value locked). Technical indicators like the price below key support levels and a declining RSI suggest further downside pressure. 8.5% of investors are now ‘Extreme Fear’, highlighting market anxiety. This drop in sentiment comes as Bitcoin and Ethereum also fell, further exacerbating the sell-off. While institutional confidence remains strong through Solana-linked ETFs, retail participation has declined, contributing to short-term volatility.