Solana Drops 5.6% as Maple Finance Expands, Whales Move $661K SOL

Solana's latest price was $144.85, down 5.601% in the last 24 hours. This price movement has been influenced by several factors, including the broader market sentiment and specific developments within the Solana ecosystem. One significant development is the expansion of the lending platform Maple Finance to the Solana network. This move aims to reach a broader class of users by deploying its syrupUSD yield-bearing stablecoin to Solana-based platforms Kamino and Orca. Previously, syrupUSD was only available on the Ethereum blockchain. Maple’s integration with Solana is launching with $30 million in liquidity, which the company hopes will establish a stable foundation for lending, trading, and collateral provisioning within the Solana ecosystem. This integration is powered by Chainlink’s cross-chain Interoperability Protocol (CCIP), which allows for data transfer across Ethereum Virtual Machine and Solana Virtual Machines, facilitating cost-effective scaling.

Maple co-founder and CEO Sid Powell highlighted that expanding to Solana unlocks a high-speed, high-capacity environment where Maple’s products can reach a broader class of users, from institutions to advanced DeFi participants. In the Solana ecosystem, Maple may compete with other lending protocols such as Save, margin.fi, Rain.fi, and Port Finance. Despite Ethereum still leading all blockchains in on-chain value, Solana has been gaining traction as a popular destination for decentralized finance (DeFi).

Solana’s real economic value, app revenue, and DEX volumes were all up by 20-30% in May. However, one noteworthy figure that did not keep pace was the stablecoin supply. Today, there are 15% fewer stablecoins on Solana than a month ago. Stablecoins are often an important source of liquidity for activities like swapping in and out of SOL. The decline in stablecoin supply comes after the surge caused by Donald Trump’s memecoin, which was paired with USDC, leading to a significant increase in stablecoin supply on Solana. Interestingly, the fresh stablecoin supply did not evaporate when TRUMP investors exited, and it even hit a fresh all-time high in April. Some in the Solana community find the decline in stablecoin supply unconcerning, given the context of the recent memecoin surge. The stablecoin exodus has been led by USDC, which saw its market cap on Solana shrink by some $1.8 billion in May. Non-USDC stables, however, grew last month, notably including PayPal’s PYUSD, which saw its supply grow by 48%. PYUSD is one of several newer stablecoins vying for a piece of USDC’s 70% market share on Solana. It is joined by USDG, a Paxos-issued stable that pledges to share revenue with its network partners, and USX, a forthcoming basis-trade token dubbed “Solana’s stablecoin.”

Solana whales have been making significant moves lately. Whale Alert data showed that 661,113 SOL was moved by an unidentified wallet to another unidentified wallet. This movement has contributed to the market sentiment around Solana, as big dormant coins are on the move. According to data from Glassnode, the platform witnessed its third-biggest Coin Days Destroyed (CDD), a metric that tracks the movement of coins based on how long they have remained dormant. A massive spike of nearly 3.55B CDD suggests either profit-taking or repositioning. Another on-chain data point suggests a massive efflux, indicating that investors are moving out of Solana. According to data from Artemis, Solana is the top chain that faced huge outflows. This suggests a probable liquidity flow between Solana and Ethereum, as the race for supremacy between these top two blockchains has gained significant attention in recent times. Ever since the SOL price marked highs close to $300, it has been trading within a steep descending trend. The rebound from the yearly lows indicated a rise above the bearish influence, but the current price action suggests a deeper correction could be possible. The price has been marking huge losses since the start of the month, which could drag the levels close to the pivotal support levels, probably below $140. The weekly chart of the SOL price suggests the token is undergoing a recovery, but it is stuck within a cup & handle pattern. The token is heading towards the crucial support at $141, and as the weekly RSI is plunging to the lower support of the descending parallel channel, the price may also drop to the support of the handle. However, the levels may rebound and rise along the support of the pattern and reach $160 in the coming days.