A few days ago, Max Keizer warned of a potential collapse of the Solana SOL. Analysts believe that this is a normal projection since a correction is part of natural cycles of the crypto market. Some recent price movements in SOL tended to confirm Keizer’s predictions, but the asset quickly recovered.
SOL crypto records a remarkable 10% drop in 24 hours!
As 2023 draws to a close, the Solana ecosystem appears to be experiencing a shift in dynamics. Trends show traders grabbing profits, causing SOL, the native crypto Solana, and some assets associated with it to decline.
In the span of 24 hours, SOL saw a decline of almost 10%, sitting just below $100 from its recent peak of $125. Among the cryptos affected by this trend, we find the memecoin BONK. The asset is down 58% from its recent highs while it saw a staggering 26,000% increase in November.
In the last 24 hours alone, BONK suffered an 18% loss, reinforced by a cumulative decline of over 30% over the past week. The crypto nevertheless maintains a gain of almost 200% over the past month for an increase of 11,411% over the year.
More fear than harm
If Solana’s performance over the last 24 hours tended to confirm Max Keizer’s predictions, this scenario is not ready to materialize. At least not for now. Indeed, after its fall, the SOL quickly rebounded. The asset is currently valued at $109 and has resumed its bullish momentum. A dynamic that crypto owes to Solana, its underlying blockchain. In fact, Solana has shown impressive resilience over the past few months and is outperforming many of its competitors.
Solana’s performance has outpaced Ethereum since early fall. This is evidenced by the SOL/ETH price ratio which has reversed for the first time since 2021, as recently indicated by the crypto research firm Kaiko. The Solana blockchain also saw its open source protocols increase remarkably by 85% compared to 30% in 2021.
Undoubtedly, the attraction of Solana investment products is one of the causes of this trend. An offer that attracted $3 million in inflows during the week ending December 10. Factually, Solana is, along with Avalanche, one of the preferred choices of crypto investors in the altcoin space.
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