Solana experienced a significant setback this week, with a double-digit decline in contrast to its competitors BNB and Ethereum, which saw gains of over 11% and 5%, respectively.

Solana and Avalanche are the only two altcoins in the top 15 cryptocurrencies to suffer a loss of over 12% in the past week. Market volatility was evident with over $300 million in total liquidations in the last 24 hours, with sellers offloading positions totaling more than $220 million.

Specifically, Solana faced intense pressure as long positions exceeding $10 million were liquidated, resulting in immediate selling pressure that drove the price down to the $100 support level.

Solana 24h market data | Source: CoinMarketCap

Further analysis of Solana’s on-chain activity reveals a nearly 30% drop in active addresses from a peak of 1.02 million to 691,000 in recent weeks. Additionally, trading volume has decreased by almost 20%, as reported by CoinMarketCap. This decline in activity and interest contributes to the bearish outlook on the token.

The impact of Solana’s downturn extends to its meme coin ecosystem, where significant volatility has been observed. For instance, BONK has seen a value decrease of over 15% within the week. The second biggest meme coin on Solana, dogwifhat (WIF), which reached an all-time high last week, has since dropped nearly 30%.

Read more: Do Kwon’s extradition to US approved by Montenegro court

For more news and updates on cryptocurrencies, investing, and finance, visit Global Crypto News.

Post Views: 2