Bitcoin‘s price volatility has led to even larger losses in altcoins. Altcoins with double-digit declines reflect investors’ expectations that BTC’s price will stabilize others after ETF approval. Moreover, taking profits seemed logical for investors who had made significant gains in a short period.
Solana (SOL)
Solana is one of the biggest Ethereum killers and the most popular network in terms of transaction volume. Although its ranking in cumulative transactions is debatable, it sits at the top. However, its speed, low cost, and high volume did not prevent its price from falling below $100. The price, which soared from $20 to over $126 within weeks, faced selling pressure from excited and profitable investors.
In the first week of the year, it experienced a significant decline, falling below $100 with a 10% drop. This decrease was painful following the local peak of $115 on January 2nd. No altcoin could resist the drop when Bitcoin suddenly erased $5,000 while being above $45,000.
We will likely witness the price showing weakness in the coming week as interest remains on BTC. However, we might see the opposite as BTC consolidates at higher peaks again. We have always emphasized that neither the rise nor the fall will continue forever. So why can’t investors capitalize on these opportunities? Investors who thought they missed the dip days ago now don’t want to miss the chance to buy at lower levels, preferring to stay on the sidelines.
Solana (SOL) Network Expands
Last year, Solana emerged as one of the best-performing cryptocurrencies, displaying an astonishing increase of about 1,000%. Most of this growth occurred in the second half of the year, coinciding with the revival of the DeFi sector and increased network activity on Solana.
Despite SOL’s volatile price performance, the Solana network remains attractive with increasing activity. The daily transaction volume on Solana reached $40 billion, the highest level since October 2022.
“Solana’s daily transaction volume has exceeded $40 billion, reaching the highest level since October 2022! Economic activity for SPL standard tokens is also at a peak not seen since the end of 2022.”
Solana-based meme coins like ONK and WIF supported this. As of January 1st, the transfer volume of Solana-based USDC surpassed TRON network’s USDT transactions. All these factors are fueling optimism for the future of SOL Coin.
