Active addresses decline, causing Solana to lose more than 12% in just one week.
Despite gains in the cryptocurrency market for BNB and Ethereum, Solana experienced a significant decline this week. Solana and Avalanche are the only altcoins in the top 15 cryptocurrencies that suffered losses of over 12% in the past week. The market’s volatility was evident with over $300 million in liquidations in the past 24 hours, with sellers offloading their positions accounting for more than $220 million of that total.
Solana was particularly affected, with long positions over $10 million being liquidated, resulting in immediate selling pressure that drove its price down to the $100 support level. On-chain activity for Solana has also seen a notable drop, with active addresses decreasing by nearly 30% from a peak of 1.02 million to 691,000 in recent weeks. Additionally, trading volume has plummeted by almost 20%. These decreases in activity and interest contribute to the bearish outlook on the token.
The impact of Solana’s decline has spread to its meme coin ecosystem, where significant volatility has been observed. BONK, for example, has seen its value decrease by over 15% within the week. The second largest meme coin on Solana, dogwifhat (WIF), which reached an all-time high last week, has also dropped by nearly 30%.
It is evident that Solana’s downturn is having ripple effects throughout the cryptocurrency market.
