By Key Points
- Saros (SAROS) fell over 70% on August 24, hitting a 4-month low
- Overleveraged traders caused the flash crash by closing large positions
- Price rebounded to $0.35, but sentiment remains negative
- Community concerns rise, with over 50% still bearish on SAROS
The Saros token crash shocked the market on August 24, as SAROS lost over 70% of its value in a matter of hours.
Once a promising altcoin on the rise, SAROS plummeted from near-record highs to $0.109 before slightly recovering. The drop erased over $600 million in market cap, sending fear across the DeFi space.
SAROS Price Crash. Source: TradingView – Techtoken
Saros is a decentralized finance (DeFi) protocol built on the Solana blockchain.
It offers a comprehensive suite of tools, including trading, staking, yield farming, and launchpad access, all powered by the SAROS token. The project was gaining momentum fast, with growing liquidity and rising adoption across Asia.
Its native token, SAROS, had been on a steady uptrend since April 2025, even reaching an all-time high on August 4. However, the crash has temporarily derailed that growth, leading many investors to panic-sell during the sudden dip.
At its lowest, SAROS hit $0.109, a price last seen in April. This dramatic decline raised red flags across the crypto community, especially as market volatility continues to unsettle altcoin investors.
This sudden crash brings back memories of the MANTRA (OM) token, which experienced a similar 90% drop in April. That token still hasn’t recovered, raising concerns that SAROS could follow a similar path.
What Caused the Saros Token Crash?
According to Saros founder Thanh Le, the crash was not due to a fundamental weakness in the project. Instead, it stemmed from a mass unwinding of leveraged positions on centralized exchanges (CEXs).
“We believe this is a market-driven adjustment. A large, highly-leveraged position reduced exposure on CEXs, dropping open interest from 90M SAROS to 20M,” said Thanh Le.
Update on $SAROS Market Activity
We are monitoring the recent price movements in $SAROS and would love to provide clarity.
Based on our ongoing investigations and available data, we believe this is a market-driven adjustment, potentially involving a large, highly-leveraged…
— Thanh Le (@imlethanh98) August 24, 2025
These kinds of fast liquidations can create cascading sell pressure, as traders are forced to close positions, triggering more sell-offs in a domino effect.
Despite the crash, Le emphasized that no team or early investor tokens were sold during the event. This was crucial for calming fears of insider dumping, a concern that has damaged other projects in the past.
This is my biggest lose in my history,
I’m already profit around 800% and then re entry short $saros with all of those profit with only 3x leverage, but we never know, got liquidated all my crypto portofolio in one trade. Hope you guys not face this kind of experience. I think i… pic.twitter.com/OqxZ8DilQa— xyre (@xyrexbt) August 24, 2025
SAROS has since rebounded to $0.35, though it remains 5% down over the past 24 hours.
This is not the first time such volatility has rocked the crypto space. Similar events have occurred across the market, including when the CAMP Network airdrop controversy raised concerns about fairness and transparency.
Community Sentiment Still Bearish After the Crash
Despite a partial recovery, over 50% of the SAROS community remains bearish, according to CoinGecko sentiment data.
Many traders fear the rebound is temporary, and more downside may be ahead. The situation mirrors previous events like the US debt crypto impact, where macroeconomic fears triggered crypto sell-offs despite strong fundamentals.
Welcome to crypto
Never trade without a Stop-Loss! No matter how much profit you’re sitting on, one sudden move can wipe it all out.
Just look at #SAROS — 142 days of gains erased in a single day dump. 💀
Risk management > Hype. pic.twitter.com/mlnhh4WY9v— Crypto Tigers (@Crypto_Tigers1) August 24, 2025
“Whatever I said about OM before came true. Now it’s SAROS. It’s going to keep falling for 1–2 years,” one analyst warned.
These comments reflect a broader risk sentiment in the market. With leverage playing a dangerous role, traders are now more cautious about chasing parabolic altcoin runs.
It’s also part of a trend of market unpredictability. For example, even major investments like the $100M BNB funding deal didn’t stop Binance Coin from facing short-term price pressure.
#SAROS Before/After
Tam bir çöp ve tam bir rezalet… Defalarca uyardım soluğu en altta alanlar için tekrar söylüyorum sakın ola ucuzladı diye yine almayın. Bu en az 1-2 yıl boyunca düşecek artık…
Daha önce Om için ne dediysem oldu şimdi Saros için de ne dediysek oldu. O… https://t.co/HIQnNmyqHm pic.twitter.com/RMl2VQJkDm
— Crypto G 🪙 (@Crypto_G__) August 24, 2025
In the case of SAROS, trust and recovery will depend on how the team communicates and performs in the coming weeks.
Thanh Le stated that Saros remains committed to building on Solana and providing liquidity infrastructure for the entire ecosystem. But rebuilding trader confidence takes time, especially in today’s volatile conditions.
Surprise surprise$SAROS https://t.co/3ZzVDv4k3a pic.twitter.com/f5VU52pyEY
— VIKTOR (@thedefivillain) August 24, 2025
Altcoin Sector Faces Broader Challenges
The SAROS crash also puts a spotlight on broader concerns in the altcoin market. Many investors are questioning how decentralized projects manage tokenomics, leverage, and liquidity, especially as more projects face similar volatility.
Additionally, the SAROS incident adds to ongoing concerns about security and transparency in crypto ecosystems. Just this week, a major XRPL identity protocol leak exposed how even top blockchain teams can be vulnerable to internal mismanagement.
As with previous events, like the Philippines’ Bitcoin reserve strategy, public trust plays a key role in how a project is perceived long-term.
Investors will be watching closely to see whether SAROS can stabilize and continue building, or whether this is the beginning of a longer downtrend like OM.
For now, the focus is on reducing market leverage, calming sentiment, and returning to fundamentals. If SAROS can deliver on its roadmap and strengthen community trust, it still has a chance to turn this moment into a comeback story.
But one thing is clear: The SAROS token crash is a wake-up call for the entire altcoin market.
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