Solana plunges 10% in a week

Solana SOL $167.26 Binance-Peg SOL 3.26% Market capitalization $0.18 billion VOL. 24 hours $0.3 billion demonstrated a significant drop in value, losing about 10% over the week, despite positive dynamics at the on-chain level. According to market data, the virtual coin’s exchange rate dropped from about $ 164 to $ 147 within seven days, the worst performance among the leading cryptocurrencies over the same period.

The main factor behind the price decline is a wave of liquidation of long positions, which was caused by a sharp drop in demand for futures. During the week, the volume of liquidations on the SOL futures market exceeded $ 22 million, which increased pressure on the price and caused an additional sell-off.

At the same time, the Solana blockchain saw an increase in activity: the number of active wallets, transaction volume, and the number of new tokens reached their highest levels in the past month. The average daily transaction volume exceeded 30 million, and the number of new users exceeded 2 million per week. However, even such indicators could not stop the price correction.

Analysts note that the negative market sentiment is reinforced by macroeconomic uncertainty, high volatility in global financial markets, and increased capital outflows from the cryptocurrency sector. All of this puts additional pressure on Solana and other digital assets, and the ecosystem is not acclimatized to it.

At present, experts advise investors to closely monitor further market behavior and avoid excessive leverage as the likelihood of continued volatility remains high.