The Fifteenth-largest cryptocurrency by market capitalization has misplaced 41.2% of its worth over the previous week, based on knowledge 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 worth motion, SOL is down almost 94.5% from its all-time excessive of $259.96 recorded in November 2021, per knowledge 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 gives stiff competitors to Ethereum and is usually referred to as an Ethereum Killer. However the current collapse of considered one of its key backers, FTX, would threaten its title.
On a month-to-month notice, SOL misplaced almost $8.5 billion in market worth because the native token nosedived, dropping greater than half of its worth over the identical interval.
In response to knowledge 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.
Solana’s every day buying and selling quantity during the last 30 days. Supply: Messari.
Over $89.474 million of Solana futures positions had been liquidated over the previous 24 hours, per knowledge from Coinglass. Of the overall liquidations, 49.94% of the positions totaling $44.69 million had been lengthy trades.
Inexperienced bars point out blown-out lengthy trades. Supply: Coinglass.
What prompted SOL’s downturn?
Alongside the ties to FTX, a big drop in Solana-based NFT exercise can also be a main driver behind the token’s fall.
NFTs performed a considerable position within the community’s success early this yr.
In response to knowledge from Nansen, the overall weekly customers throughout completely different NFT platforms on Solana dropped over 33% from 122,410 the earlier week to 81,811 this week.
Weekly customers on Solana. Supply: Nansen.
Although Solana has been hit the toughest, the broader crypto market has additionally taken a hefty blow from the FTX collapse.
The trade’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.
Disclaimer
The views and opinions expressed by the creator are for informational functions solely and don’t represent monetary, funding, or different recommendation.
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