Solana Sees Double-Digit Decline While Competitors Gain
Solana, one of the top 15 cryptocurrencies, experienced a significant decline of over 12% this week. This is in contrast to its competitors such as BNB and Ethereum, which saw gains of over 11% and 5%, respectively. The marketโs volatility is evident with over $300 million in total liquidations in the past 24 hours alone, with sellers offloading positions amounting to more than $220 million.
Key Points:
โ Solana and Avalanche are the only altcoins among the top 15 cryptocurrencies to suffer losses.
โ Long positions exceeding $10 million were liquidated, driving Solanaโs price down to the $100 support level.
On-chain Activity and Trading Volume
An analysis of Solanaโs on-chain activity reveals concerning trends. There has been a nearly 30% drop in active addresses from a peak of 1.02 million to 691,000 in recent weeks. Additionally, the trading volume has plummeted by almost 20%. These decreases in activity and interest contribute to the bearish outlook on the token.
Impact on Meme Coin Ecosystem
The downturn in Solana has had ripple effects on its meme coin ecosystem. BONK, one of the meme coins, has seen a decrease in value of over 15% within the week. Another popular meme coin, dogwifhat (WIF), reached an all-time high last week but has since dropped nearly 30%.
Hot Take: Solanaโs Downturn Raises Concerns
The recent decline in Solanaโs price raises concerns among crypto enthusiasts. While its competitors have seen gains, Solana has experienced a double-digit decline. The on-chain activity and trading volume have also decreased significantly, contributing to the bearish outlook on the token. Additionally, the downturn has affected the meme coin ecosystem on Solana, with notable decreases in value. It remains to be seen how Solana will recover from this downturn and regain investor confidence.
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