The crypto market is experiencing unprecedented tremors, and Solana, once considered a robust player, is taking a major hit. In one week, the fast, low-cost blockchain lost $3 billion of its market capitalization, revealing worrying vulnerabilities amid heightened investor distrust.
The fall of Solana
The crypto market is going through a period of marked turbulence, and Solana is one of the main victims. In the space of a week, Solana (SOL) saw its value drop by 5%, erasing billions of dollars from its market capitalization. On June 6, the price of SOL was still $170, but it plunged to $123.42 on June 24.
This drastic drop comes against a backdrop of persistent negative sentiment among investors across the crypto market.
The problems don't end there for Solana. Blockchain, usually praised for its high throughput and low transaction fees, has recently faced network congestion issues. Furthermore, intense competition from other blockchain platforms has only made the situation worse.
The Influence of memecoins and personalities
The fall of Solana cannot be understood without examining the impact of memecoins and influential market figures. Recent memecoin transactions have heightened Solana's volatility, drawing attention to its structural weaknesses.
In May, more than 500,000 memecoins were launched, fueling a craze that has only made the situation more complex. Among the influential actors, Andrew Tate distinguished himself with a spectacular action: it burned Solana-based memecoins worth $38 million, eliminating 58% of their supply and causing a 130% increase in their price. Although he declared that he did not benefit personally from this action, his intervention undoubtedly disrupted the market.
This context of instability is not unique to Solana. Other major cryptos, such as Ethereum (ETH), Cardano (ADA), and BNB, also suffered similar losses, while Bitcoin fell to $61,000. Popular memecoins, Dogecoin (DOGE) and Shiba Inu (SHIB), saw a decline of around 5%. It’s now up to Solana to prove its resilience to regain the trust of crypto investors!
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