Solana's Bearish Trend Deepens Amid Meme Coin Concerns
1min read Solana's bearish trend has deepened in recent weeks, with the cryptocurrency underperforming Bitcoin amid a broader market downturn and concerns surrounding meme coins minted on its network.
Over the past 30 days, Solana (SOL) has seen a significant 32% price drop, compared to Bitcoin's more modest 8% decline during the same period. Ethereum, meanwhile, has shown more stability, with a 17% decline over the same period. At press time, Solana is trading at $169.74, reflecting an 8.47% drop in the last 24 hours and a 16.16% decline over the past week.
Data from Glassnode reveals that while Solana outperformed Ethereum on 23 out of 49 days since the start of the year, it has proven more sensitive to market downturns. Increased discussions and market concerns have surrounded Solana, with traders expressing skepticism about the legitimacy of many meme coins minted on its network. These tokens lack utility and are prone to price manipulation, fueling discussions about potential investment shifts to other assets.
Crypto trader 'Xremlin' took to social media to declare, "It's over for Solana," drawing a comparison between its decline and the aftermath of the FTX collapse. Xremlin highlighted how Solana's popularity spiked in recent months, fueled by speculation and the boom of meme coins. However, most of these tokens are believed to be part of pump-and-dump schemes, contributing to the negative sentiment surrounding Solana's ecosystem.
Notably, controversy followed the launch of the TRUMP meme coin, which saw rapid price surges before investors shifted focus to a new token, MELANIA. This subsequently led to a sharp decline in TRUMP's value. Reports also surfaced of large sums extracted during the launch, raising concerns about market manipulation. Other projects, such as CAR, associated with the Central African Republic's President Faustin-Archange Touadéra, experienced rapid declines, further fueling market concerns.
