Key Points
Despite other cryptocurrencies like BNB and Ethereum seeing gains, Solana experienced a significant decline this week. Along with Avalanche, it was one of the only two altcoins in the top 15 to face a loss of over 12% in the past week. The market’s volatility was highlighted by over $300 million in total liquidations in the last 24 hours. Of this, more than $220 million came from sellers offloading their positions.
Solana’s Struggles
In particular, Solana faced significant challenges. Long positions exceeding $10 million were liquidated, leading to immediate selling pressure. This drove its price down to the $100 support level. Further analysis of Solana’s on-chain activity showed significant trends. There was a nearly 30% drop in active addresses from a high of 1.02 million to 691,000 in recent weeks. Its trading volume also fell by nearly 20%, as reported by CoinMarketCap. This decrease in activity and interest contributes to the bearish outlook on the token.
The impact of Solana’s downturn extended to its meme coin ecosystem. Significant volatility was observed here. Among these, BONK saw its value decrease by 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%.
