SOL reached a record high of $263 about a month back.
In the past, the only movement has been downwards for this asset. This asset has retraced down to $190.
Solana has fallen a few rungs down the crypto leaderboard after a 25% drop. SOL now ranks sixth in the cryptoasset market cap, behind bitcoin, BNB and BNB. Hyperliquid has been cited as SOL’s main competitor by some, while others believe that Solana can continue running even after a minor drawdown.
To put things in context, the week has been rough for all cryptos after investors were left feeling pessimistic despite a rate cut at the recent FOMC.
SOL was the only major toy that showed a Santa Slide. “particular weakness,” David Lawant is the FalconX Head of Research. He wrote a Friday. SHIB, DOGE, and other memecoins performed worse. This may indicate that volatile cryptos fell harder. SOL, while not a memecoin by any means is higher beta than BTC and ETH. The fact that XRP, BNB and other altcoins have surpassed Solana hasn’t deterred them.
Solana’s investors could be putting a price on a $2.1 Billion SOL token unlocked scheduled to occur March 1, 2025. If the tokens unlock, it may put pressure downwards on the assets.
Alan Orwick of Quai Network said the price of SOL could also be affected by a newly discovered competitor, Hyperliquid. This newcomer may have a tendency to pull away certain investors. Hyperliquid, a layer-1 crypto and decentralized exchange, focuses on trading perpetual futures. The HYPE airdrop it conducted earlier in the month was amongst the biggest ever seen in cryptocurrency history. By market capitalization, HYPE has already surpassed the top 25 crypto coins.
Because Hyperliquid is very fast, some have started calling it a better version of speed-focused Solana — although its momentum has stalled somewhat in recent days amid speculation that North Korean hackers are plotting an exploit of the blockchain.
Orwick also said a Trump administration that is pro-crypto and the potential approval of SOL ETF could have a positive impact on this asset in 2019.
Also, you can always use memecoins.
Solana’s onchain pump is the launchpad for and a major driver behind its activity. “probably won’t get shut down by the Feds until 2028,” Nick Chicago, co-founder of CFX Labs and CEO said. “Wouldn’t be surprised to get major brands doing memes.”
Chicago bullishness is also anecdotal: Chicago’s mother-inlaw who buys cryptos only at the highest price. “has not deployed yet.”
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