Solana ecosystem tokens experienced a decline this week, influenced by heightened geopolitical turbulence and uneven sentiment across the network’s most prominent market segments.
The total market capitalization of Solana-based tokens saw a decrease of more than 9.4% week-over-week. This performance broadly mirrored that of Solana (SOL), which fell around 9.5% over the same period, according to data from CoinMarketCap.
The Solana ecosystem market cap dropped from over $202 billion on January 13 to less than $184 billion on January 20.
This sell-off reflected broader market volatility, exacerbated by rising diplomatic tensions between the United States and European countries.
InfoFi, a segment of the Solana ecosystem, logged particularly sharp losses. Kaito (KAITO), widely considered Solana’s flagship InfoFi token, fell nearly 25%. This decline followed social media platform X's imposition of access restrictions on the project. InfoFi projects utilize tokens to monetize user engagement and information sharing.
In contrast, tokenized real-world assets (RWAs) on Solana reached a record total market cap exceeding $1 billion, indicating continued embrace of the blockchain network by financial institutions. RWAs are on-chain representations of traditional financial instruments.
KAITO Slides as X Throttles InfoFi Access
KAITO experienced a sharp fall after X revoked API access for InfoFi projects on January 15.
Nikita Bier, X’s head of product, stated in a post, "We will no longer allow apps that reward users for posting on X (also known as ‘infofi’)." He further explained, "This has led to a tremendous amount of AI slop and reply spam on the platform."
Kaito's function is to aggregate performance data for posts on X and to reward users whose content drives engagement.
Since January 15, KAITO has declined by approximately 30%. Its market cap fell from over $165 million to less than $110 million by January 20, according to data from CoinMarketCap.
The token’s Fully Diluted Value (FDV), which represents the value of all circulating and non-circulating tokens at current prices, stood at over $450 million as of January 20.
RWAs on Solana Surpass $1 Billion in Market Capitalization
Tokenized real-world assets on Solana surpassed $1 billion in total market capitalization this week, a milestone reflecting the continued interest from traditional financial institutions in the blockchain network.
On January 15, tokenized RWAs reached a total market cap of $1.15 billion, according to Capital Markets, an account affiliated with the Solana network on X.
This figure signifies an increase of over 500% year-over-year, demonstrating growth across various tokenized asset classes, including U.S. Treasury debt, equities, alternative assets, and corporate debt.
ZORA Expands its Presence to Solana
On January 16, Zora (ZORA), a Web3-native social media platform built on Coinbase’s Base network, expanded its operations to Solana. This expansion makes its ZORA token natively tradable on the Solana network.
Zora provides users with the ability to transform posts, images, and videos into tradable coins that generate fees for creators.
The ZORA token is now accessible for trading through applications such as Jupiter Exchange, Phantom, Meteora, and Raydium. The Base network continues to host Zora’s Web3 application and its core liquidity pools.
As of January 20, ZORA had a market capitalization of approximately $141 million and an FDV of roughly $315 million, according to data from CoinMarketCap.
In a post on X on January 16, Solana’s consumer ecosystem lead, Pedro Miranda, indicated that "more fun assets like Zora" are anticipated to launch on the network in the near future.
By the Numbers
Total Solana Ecosystem Market Cap: $183.6B
Top 5 Solana Coins by Market Cap:
- Solana (SOL): $72.7B
- ChainLink (LINK): $8.8B
- World Liberty Financial (WLFI): $4.2B
- Uniswap (UNI): $3.0B
- Aave (AAVE): $2.1B
Most Visited Solana Coins:
- Masters of Trivia (MOT)
- Solana (SOL)
- ChainLink (LINK)
- Axie Infinity (AXS)
- Terra Classic (LUNC)
