Solana (CRYPTO: SOL), often referred to as an ‘Ethereum (CRYPTO: ETH) killer’, has seen its native token, SOL, drop by 12% in the last 24 hours, disrupting its year-end surge. After reaching a high of $126.30 on December 25, SOL has seen a sharp 13% drop within a week.
The previous price rally was largely due to an airdrop frenzy sparked by the listing of the new JITO token on major exchanges on December 7, 2023. This quickly achieved a market cap exceeding $300 million. This was closely followed by the launch of the BONK (CRYPTO: BONK) meme coin on December 14, 2023, which resulted in a complete sell-out of Solana’s Saga phone, as certain airdrops targeted mobile device owners.
Despite this, Solana’s decentralized applications saw a significant increase in transaction volume, remaining strong even as competing blockchains such as Arbitrum, zkSync, and BNB Chain struggled with increased activity in December. However, the decline in investor interest became apparent after the airdrop excitement with Jito (CRYPTO: JTO), DogWifHat (CRYPTO: WIF), and BONK notes experiencing drops of 40%, 41%, and 44% respectively.
When examining Solana’s total value locked (TVL), a downward trend has been observed. The TVL, measured in SOL, reached a peak of 15.4 million SOL on December 19, 2023, but subsequently fell by 17%, settling at 12.8 million SOL on January 5, 2024.
American broadcaster and filmmaker Max Keiser reiterated an earlier statement, succinctly stating, “The rug pull has begun, anon.” A pseudonymous analyst known as Pentoshi shared a perspective on SOL’s potential trajectory. “SOL update #1 Not sure we get as low as I have here, but do expect at some point to be able to bid in the $70’s. Looking forward to not just trading sol, but holding some ecosystem coins for the next year or so,” Pentoshi commented.
At the time of writing, SOL was trading at $89, down 12.50% on Sunday, according to Benzinga Pro.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Pentoshi, Max Keiser |
| Companies | Solana, Arbitrum, zkSync, Benzinga.com, Ethereum, BNB Chain |
| Currencies | Solana, Jito, dogwifhat, Bonk, Ethereum |
| Securities | None |
