Solana saw a double-digit decline this week despite its competitors BNB and Ethereum experiencing gains of over 11% and 5%, respectively.
Solana and Avalanche stand out as the only two altcoins among the top 15 cryptocurrencies to suffer over 12% loss in the past week. The market’s volatility was underscored by over $300 million in total liquidations in the past 24 hours alone, of which more than $220 million came from sellers offloading their positions.
Solana, in particular, felt the heat as long positions exceeding $10 million were liquidated, exerting immediate selling pressure that drove its price down to the $100 support level.
Further analysis reveals notable trends for Solana’s on-chain activity, including a nearly 30% drop in active addresses from a peak of 1.02 million to 691,000 in recent weeks. Additionally, its trading volume has plummeted by nearly 20%, as reported by CoinMarketCap. This decrease in activity and interest contributes to the bearish outlook on the token.
The ripple effects of Solana’s downturn extend to its meme coin ecosystem, where significant volatility has been observed. Among these, BONK has seen its value decrease by over 15% within the week. The second biggest meme coin on Solana, dogwifhat (WIF), which reached an all-time high last week, has since dropped nearly 30%.
