Crypto: Solana Loses 3 Billion In Market Cap In Record Time

The crypto market is experiencing unprecedented tremors, and Solana, once considered a robust player, is taking a hard hit. In one week, the fast and low-cost blockchain lost $3 billion in market capitalization, revealing worrying vulnerabilities amid increasing investor distrust.

The Fall of Solana

The crypto market is going through a period of marked turbulence, and Solana is one of the main victims. In the span of one week, Solana (SOL) saw its value drop by 5%, thus wiping out billions of dollars from its market capitalization. On June 6, the price of SOL was still $170, but it plunged to $123.42 on June 24.

This drastic drop comes in a context of persistent negative sentiment among investors across the entire crypto market.

The problems do not stop there for Solana. The blockchain, usually praised for its high throughput and low transaction fees, has recently been faced with network congestion issues. Additionally, intense competition from other blockchain platforms has only exacerbated the situation.

The Influence of Memecoins and Personalities

The fall of Solana cannot be understood without examining the impact of memecoins and influential market figures. Recent memecoin transactions have heightened Solana’s volatility, drawing attention to its structural weaknesses.

In May, more than 500,000 memecoins were launched, fueling a craze that only complicated the situation. Among the influential actors, Andrew Tate stood out with a spectacular action: he burned Solana-based memecoins worth $38 million, thus eliminating 58% of their supply and causing a 130% increase in their price. Although he claimed not to have profited personally from this action, his intervention undeniably disrupted the market.

This context of instability is not unique to Solana. Other major cryptos, such as Ethereum (ETH), Cardano (ADA), and BNB, have also suffered similar losses, while Bitcoin fell to $61,000. Popular memecoins, Dogecoin (DOGE) and Shiba Inu (SHIB), registered a drop of about 5%. It is now up to Solana to prove its resilience to regain the trust of crypto investors!