Why Solana Price Drops: Here Are the Details and Developments!
The cryptocurrency market is experiencing a sharp decline, causing concern among investors. Bitcoin (BTC) is currently trading at $51,729, down more than 10%. The 5th largest cryptocurrency To the left (SOL) is facing a 17% decline. The total crypto market cap decreased by 13% to $1.87 trillion. On the other hand, the trading volume increased by a massive 119.72% to $142.44 billion.
Reasons for Solana’s Price Drop
Interest in Solana has been increasing in anticipation of the upcoming Solana ETFs in the US. However, the sudden drop in crypto prices is associated with a sell-off in the Japanese stock market, with the Nikkei 225 index down 7.1%.
On August 2, the Japanese banking sector experienced its worst day since 2008. When the central bank raised interest rates, the sudden market crash caused the crypto market to lose around $500 billion in total value. This was the biggest 72-hour loss in a year.
Solana's Strong DEX Performance
Despite the overall market decline, Solana’s decentralized exchange (DEX) performance has been remarkably strong. In July, 30% of crypto DEX trading volume came from protocols operating on the Solana network. EthereumIt exceeded 28.12% of .
As of the end of the month, SOL’s DeFi ecosystem processed $56.849 billion worth of transactions, while Ethereum’s transaction volume was recorded at $53.867 billion.
Solana Price Analysis
Currently, SOL is trading at $121.58 and is down 15.76% in the last 24 hours and 37.2% in the last week. If the price drops below $115, it is likely to drop further to the support level of $107. On the other hand, if the price rises above $135, it is likely to rise to the resistance level of $164.
