Solana’s SOL share price had risen sharply in recent weeks, following a wave of enthusiasm for the ecosystem. But it seems that spirits are calming down: the SOL price has fallen sharply over the past 24 hours. What’s going on?
SOL has fallen sharply since yesterday
Solana is under particular scrutiny at the moment: the cryptocurrency has experienced a wave of enthusiasm in recent weeks, and shown the dynamism of its ecosystem. Memecoins on the rise, volumes exploding on decentralized finance platforms (DeFi), the SOL price climbing steadily… Interest in the network has been palpable since the beginning of the month.
But since yesterday, the trend has been downward. The SOL price briefly dipped below the psychological threshold of $100 on certain platforms, testifying to a certain loss of steam in the enthusiasm that has carried its price. Solana’s cryptocurrency is now less capitalized than Binance’s BNB, and is back in 5th place in the rankings:
The ranking of today’s most capitalized cryptocurrencies
In total, Solana’s SOL has a capitalization of $43 billion, compared with $48 billion for Binance’s BNB. This morning, however, the SOL share price was back on the rise:
The fall in the SOL price overnight, with a possible resumption of the rise
Solana is not the only one affected by the trend. The memecoins Bonk (BONK) and Dogwifhat (WIF), which had enjoyed stratospheric breakthroughs in recent weeks, are also struggling. They have lost over 50% of their value since their respective all-time highs. BONK is down -15% over the past 24 hours, and WIF is down -22%.
What are the reasons for these falls in the Solana ecosystem?
These sharp falls in Solana’s cryptocurrency prices are not entirely unexpected. For some weeks now, the ecosystem has been in turmoil, and it was expected that once the initial wave of enthusiasm had passed, the market would cool down. Investors tended to take their profits before the end of the year: the majority of transactions were indeed made in stablecoins, such as Tether (USDT).
Will Solana succeed in creating a new buzz at the start of 2024? If certain indicators are to be believed, the trend could continue over the next few months. In 2023, Google searches for “Solana” surpassed those for “Ethereum”, an indicator of the curiosity surrounding the ecosystem. Over the course of the year, the price of SOL has risen explosively: +1,017%. By way of comparison, its competitor ETH rose by “only” +91%. So 2024 could well be the year of Solana
