Solana (SOL) experienced a significant downturn in the last 24 hours, dropping below the significant $100 mark as widespread market uncertainty led to intense selling pressure.
Data indicates that SOL fell by over 15% during this period, briefly touching $96 before bouncing back to approximately $101 at the time of writing.
This decline represents a 14-month low for the token, erasing $71 million worth of leveraged positions associated with it, based on information from CoinGlass.
Market analysts attribute this price movement to increasing worries over global trade tensions. They believe that the ongoing tariff conflicts and the potential for an economic recession have shaken investor confidence, resulting in several major cryptocurrencies taking a hit.
Solana’s on-chain activity diminishes
The recent price drop coincides with a decrease in Solana’s on-chain activity observed over recent months.
A prominent asset management firm highlighted a notable decline in several key metrics for Solana in March. They reported a 66% drop in the network’s average fees, a 34% decline in stablecoin transfer volume, and a 53% fall in trading activity on decentralized exchanges (DEX).
The firm also noted that Solana’s share of the DEX market has reached its lowest level since October 2024, after having momentarily outperformed Ethereum’s ecosystem in January.
The waning excitement around memecoins has been identified as a significant factor contributing to this decline. Earlier this year, daily memecoin trade volumes on Solana peaked at around $12 billion but fell to roughly $720 million by March.
Despite this, memecoins continue to be a substantial driver of activity on the blockchain network. In March, tokens in this category (excluding SOL and stablecoins) accounted for 92% of Solana’s DEX volume, indicating the ecosystem’s reliance on speculative trading.
On a brighter note, institutional interest seems to be on the rise. The Chicago Mercantile Exchange has recently launched SOL futures contracts, soon followed by Volatility Shares unveiling the first SOL futures ETF.
These developments may pave the way for spot-based exchange-traded products in the near future.
Meanwhile, PayPal has broadened its cryptocurrency offerings by enabling US users to buy, sell, and transfer Solana directly through its primary platform and Venmo. The payment giant indicated that this move stemmed from growing demand among its user base for expanded token support.
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