The Fifteenth-largest cryptocurrency by market capitalization has misplaced 41.2% of its worth over the previous week, in response to information from Coingecko.
SOL, Solana’s native token, dropped from $20.16 on November 9 to $14.24 at press time, making it the worst performer among the many top-100 cryptocurrencies by market capitalization.
Owing to the week’s bearish value motion, SOL is down practically 94.5% from its all-time excessive of $259.96 recorded in November 2021, per information from Coingecko.
Solana is a proof-of-stake (PoS) layer-1 blockchain community that permits builders to create decentralized finance functions (DeFi) and non-fungible tokens (NFTs).
Solana provides stiff competitors to Ethereum and is commonly known as an Ethereum Killer. However the latest collapse of certainly one of its key backers, FTX, would threaten its title.
On a month-to-month observe, SOL misplaced practically $8.5 billion in market worth because the native token nosedived, dropping greater than half of its worth over the identical interval.
In accordance with information from Messari, SOL’s every day spot buying and selling quantity slumped 85% from $1.31 billion to simply above $196 million over the previous week as traders shied away from the asset. Discount in every day buying and selling volumes makes the asset bancrupt over time.
Over $89.474 million of Solana futures positions had been liquidated over the previous 24 hours, per information from Coinglass. Of the overall liquidations, 49.94% of the positions totaling $44.69 million had been lengthy trades.
What brought on SOL’s downturn?
Alongside the ties to FTX, a big drop in Solana-based NFT exercise can be a major driver behind the token’s fall.
NFTs performed a considerable position within the community’s success early this yr.
In accordance with information from Nansen, the overall weekly customers throughout totally different NFT platforms on Solana dropped over 33% from 122,410 the earlier week to 81,811 this week.
Although Solana has been hit the toughest, the broader crypto market has additionally taken a hefty blow from the FTX collapse.
The business’s market capitalization has fallen 8% to barely above $883 billion over the previous week.
Over the previous week, main property, Bitcoin (BTC) and Ethereum (ETH) have additionally misplaced 9.7% and seven.5%, respectively.
The views and opinions expressed by the writer are for informational functions solely and don’t represent monetary, funding, or different recommendation.
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