Ethereum Rallies Amid Solana LIBRA Controversy

Amid the Solana memecoin LIBRA controversy, Ethereum (ETH) has experienced a rally with a 3.37% spike and an impressive rise in Total Value Locked (TVL) as many users migrate to Ethereum.

Lookonchain data shows that a significant amount of capital is shifting toward Ethereum. In the last 7 days, stablecoins like USDC and USDT holdings on Ethereum surged by $1.1 billion. Conversely, around $772 million in funds have left Solana. This migration began after the launch of the LIBRA memecoin, which raised doubts about the credibility of the Solana blockchain.

The controversy triggered a massive drop in Solana’s Total Value Locked (TVL), which had soared to $14.2 billion on January 18. In just four days, the TVL on Solana fell from $10.95 billion to $10.5 billion.

> In the past 7 days, stablecoins (USDT & USDC) on #Ethereum increased by $1.1B, whereas stablecoins (USDT & USDC) on #Solana decreased by $772M. source
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> — Lookonchain (@lookonchain) February 17, 2025

MELANIA, the meme coin officially promoted by the United States (US) First Lady, and LIBRA, associated with President of Argentina Javier Milei, have become controversial due to allegations of speculation, insider trading, and loss of investor funds.

Furthermore, President Milei is facing legal action regarding the promotion of LIBRA. Reports indicate that lawyers in Argentina have filed fraud charges against him, accusing him of promoting a meme coin that was a “rug pull” scam.

Jonatan Baldiviezo, a lawyer and plaintiff stated, “Within this illicit association, the crime of fraud was committed, in which the President’s actions were essential.”