Solana Price Prediction as Circle Freezes $58 Million on SOL Blockchain — What’s Going On?

Solana is under pressure today, dipping slightly to $172.70 following news that $58 million worth of USDC on its blockchain was frozen by Circle.

The stablecoin issuer has the authority to “blacklist” tokens when requested by regulators or if there’s suspicion of criminal activity — sparking renewed debate over control and decentralization within crypto’s leading ecosystems.

JUST IN: @circle freezes $57.6 million worth of $USDC connected to the $LIBRA team. pic.twitter.com/ilUy9FYG83

These frozen funds are allegedly linked to the Libra fiasco – a meme coin promoted by the President of Argentina, Javier Milei, whose value plummeted right after the head of state publicly endorsed it.

The collapse of Libra caused millions of dollars in losses to multiple individuals and the President is being investigated for his involvement in the matter.

Although blockchain technology should supposedly be permissionless, centralized organizations like Circle still have some degree of control over the assets they issue.

For blockchains like Solana to embrace USDC and support it, they must concede to the requirements imposed by Circle, including giving them the right to freeze assets at their discretion.

Although the Libra token has been an unfortunate chapter in the meme coin saga, other tokens have been performing positively lately and Solana continues to be the preferred choice for promoters to launch this kind of asset.

This favors a bullish Solana price prediction as the meme coin category was worth $70 billion at the time and, at some point, had a combined market value of $150 billion.

As the utility token of the Solana blockchain, SOL’s demand depends primarily on the network’s transaction volumes and performance.

If more meme coins are minted and trading volumes surge, as they have lately, the demand for this asset will increase over time.

Solana has recently broken out of an inverse head and shoulders pattern that supports a push to the $225 level based on the height of the head.

This distance is often used as a reference to determine how high the price could go after the breakout is confirmed.

The price still needs to retest the neckline to confirm the pattern’s relevance and bullish bias. Hence, the token could drop to $150 and bounce back to break out of its latest $180 resistance to reach the target of this Solana price prediction.

In the meantime, a promising crypto presale called Solaxy (SOLX) promises to strengthen the Solana ecosystem by getting rid of the congestion issues that have plagued this blockchain in the past.

Solaxy (SOLX) is a layer-2 scaling solution for Solana that aims to make this blockchain more scalable and efficient.

This is achieved by introducing a side chain that bundles transactions offline to alleviate the mainnet’s burden, especially during peak usage times.

The Solaxy team has already deployed a testnet and a token bridge and has made available a block explorer so investors’ can check the performance of the solution in real time.

$SOLX is the L2’s utility token and its demand will rise once the solution is adopted by wallets and exchanges.

To buy $SOLX before its presale ends, head to the Solaxy website and connect your wallet (e.g. Best Wallet). You can either swap SOL or USDT or use a bank card to make your investment.

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