Solana Dips To 5-Month Low As Memecoin Traders Retreat Post-LIBRA Scandal
The cryptocurrency market is experiencing huge turmoil this week, with Sol facing particularly huge challenges. With the excitement surrounding memes, prices have dropped to their lowest levels in months.
Following historic attacks on the Baybit Exchange and President Trump’s controversial tariff proposals, overall Crypto Market In a downturn, Bitcoin has dropped 12% in the past week. Solana, by comparison, plunged 22%, hit a new five-month low.
Solana struggles as new data shows dramatic decline
As Report According to Fortune, the decline in Solana Value can be attributed to its association with recent celebrity-supported member scandals, especially the Libra incident.
The cryptocurrency soared to nearly $5 billion in market capitalization before crashing after Argentina President Javier Milei’s promotion, and his involvement sparked anger and prompted an investigation.
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Zach Pandl, head of research at Grayscale, crypto asset manager, noted that the incident highlighted the incident. volatility And the risks associated with Memecoins said: “The current phase of the Memecoin transaction about Solana has ended.”
Solana’s rise as the preferred blockchain for Memecoin development is largely due to its low transaction costs, high transaction speeds and user-friendly infrastructure.
Platforms such as pumps facilitate rapid creation of cryptocurrencies on Solana, resulting in peaks of more than 71,000 aldult Launched in one day. However, according to analytics firm Dune, that number has since dropped to just 26,000.
Analysts warn of potential declines below $100
While many adults lack intrinsic value and are often associated with scams, PANDL suggests that the recent Memecoin Frenzy has had some positive impact on Solana Ecosystem.
“It lands on users in various ways, generates revenue and helps emphasize the Solana blockchain,” he explained. “In this sense, Memecoin transactions are one of many foundations for developing the next generation of financial infrastructure.”
Added Solana’s plight, which is the open interest of Solana Futures It has dropped In the past month, there has been a 44% rate, down from $6.39 billion in history to $3.57 billion today. This decline indicates a decrease in investor confidence and interest in leveraging Solana’s position.
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Co Ringecko data A similar pattern for investors is also shown, as trading volumes have dropped 54% in the past 48 hours, with Solana alone having a total market capitalization of $66 billion.
Currently, analysts are trading at $134, identifying this price point as a key support zone in the ongoing downtrend. according to For Crypto General, if this support cannot be held, the next support level could be below $100, while Solana’s all-time high was down by more than 65%.
Featured images from dall-e, charts from tradingview.com
