Solana entered a downward trend last week, losing about 5% and billions of dollars in market value since yesterday. The cryptocurrency saw a significant increase over the past 12 months, trading at $170 as of June 6, but the Solana price dropped to $123.42 on June 24.
What’s Happening with Solana?
Solana experienced at least an 11% decline last week, coinciding with the overall drop in the value of crypto assets amid negative investor sentiment in the cryptocurrency market. Mert Mumtaz, co-founder and CEO of the infrastructure initiative Helius Labs, implied that the negative trend might continue this week and claimed to have liquidated all his crypto assets, stating that crypto is over.
The sharp decline in Solana can be attributed to a combination of market-wide factors and specific challenges faced by the cryptocurrency. Additionally, the Solana network, known for its high throughput and low transaction fees, is facing network outages and competition from other blockchain platforms.
Notable Claim About Solana
Andrew Kang, co-founder of the crypto-focused investment firm Mechanism Capital, stated that although Solana has shown the ability to recover in the past, recent memecoin transactions have pulled it in both directions.
An increasing number of celebrities have recently introduced new memecoin projects to the market. At least 500,000 memecoins were launched in May alone. Andrew Kang predicted that if the memecoin hype stalls in the coming months, Solana could drop to $80. According to Solana users, the beginning of the end of the memecoin craze might have come with Andrew Tate’s threat to Solana.
Tate claimed to have burned Solana-based memecoin TOP G worth $38 million, eliminating 58% of its supply and causing its price to increase by over 130%. Despite the significant damage, leaving TOP G’s market value over $65 million, Tate claimed he did not personally profit from this action.
However, the decline in Solana is not happening in isolation. Other cryptocurrencies like Ethereum, Cardano, and BNB have also experienced similar losses, with Bitcoin dropping to the $61,000 level. Meanwhile, popular memecoins Dogecoin (DOGE) and Shiba Inu (SHIB) saw nearly a 5% decline.
