Solana Faces Bearish Trends Amidst Ecosystem Challenges
Solana’s price has been struggling, dropping over 57% from its peak this year. It recently hit $126.5, reducing its market cap to $64.45 billion. This is a significant fall from its earlier value of over $127 billion.
The decline is due to issues within its ecosystem. The meme coin market on Solana has seen a massive drop. the total market cap of Solana-based meme coins fell from $25 billion in January to just $7.2 billion. Only Official Trump (TRUMP) holds a market cap above $1 billion.
This has affected trading volumes on Solana’s decentralized exchanges. Platforms like Raydium and Orca have seen a 34% drop in volume in the last week, now at $8.3 billion. In comparison,BSC and Ethereum’s DEX protocols handled $14.2 billion and $9.65 billion, respectively, in the same period. Solana’s DEX protocols handled $61 billion in the last 30 days, less than Ethereum’s $78 billion. Solana’s network revenue has also decreased. It generated $21.2 million this month, down from $90 million last month.
- Raydium, Orca, and Meteora have seen a decline.
- DeFi llama data shows a 34% fall in the last seven days.
Technical analysis shows a strong downward trend. The 50-day and 200-day moving averages crossed on March 3, forming a death cross pattern. A bearish flag pattern is developing, indicating further losses. A breakdown below the current support level could push the price to around $100.
For more details, check DeFi Llama and crypto.news.
