Since yesterday, the crypto market has officially entered the fear zone, hinting at the investor’s hesitation in placing trade. The result of these hesitations is the cryptos struggling in the market, especially altcoins like Solana, Ethereum, XRP, and many others. Out of these, Solana, which ruled the market thanks to heavy demand for Solana tokens, is struggling. It is because the Solana price dropped below $130 earlier in the day, concerning the holders for its further drop amid its ongoing week-long downtrend.
Solana has lost more than 8% of its value in the last week, currently at $133.28 after a minor recovery. However, with the high selling pressure, the downtrend may continue if the SOL price fails to surge above the pivot at 139.42.
Three Reasons Why Solana Price Is Struggling
Solana’s was booming at the beginning of the year, as its price surged to a high of $202.87. However, with the bulls losing their grip on the market, most of the altcoins began to struggle, especially as the market entered the fear zone yesterday, continuing even today.
Regardless, the biggest reason for Solana’s price is the Pump.fun selling nearly 50% of its accumulated assets. With this, the Solana-based meme coin deployer, Pump.fun has dumped 274,373 SOL ($42.64M) in recent Lookonchain reports.
Since its launch in January, the platform boomed in terms of popularity and token launch. It has hit the 680K $SOL($91M) mark in revenues and has accumulated more than 0.1% of Solana’s current supply. But at the same time, it sold its first share of 254,074 $SOL($40.26M) at an average price of $158.
The https://t.co/DrKlYnPPqY Fee Account sold 10,300 $SOL($1.38M) at $134.46 again 40 mins ago!https://t.co/DrKlYnPPqY has sold 264,373 $SOL($41.64M) at an average price of $157.5.https://t.co/dZDKPfB4vU pic.twitter.com/mRLYK100zl
— Lookonchain (@lookonchain) September 3, 2024
The second selling was on September 3, which dumped 10,300 $SOL($1.38M) at $134.46, resulting in an instant SOL price drop. A few have called it locking in the profits, whereas many called it offering the token at a low before the price boost.
However, this was not the end of the Solana’s struggles. Earlier DefiLlama reports revealed that Solana’s daily revenue also hit a six-month low on Monday due to the rise of the pump.fun competitors like Ethervista and SunPump. As per reports, the Solana revenue was only $190.7K on September 1, a 90% decline from March’s peak at $2.47 million.
The impact of this declining revenue and competition has also dropped the Solana price, especially with the launch of SunPump, which has already beaten Pump.fun in terms of popularity. The impact of this popularity is also its native token as analysts believe SUN Price Could Explode 300% in future.
Final Thoughts
Despite the 4% recovery in the Solana price, the token is struggling on the weekly charts, including its drop to $123K on August 4. This drop came after the Solana meme coins deployer, Pump.fun sold almost 50% of its accumulated SOL assets at an average price of $157.5. Moreover, with rising competition like Ethervista and SunPump, the altcoin’s suffering has increased.
The post Why Is Solana Price Down Today? appeared first on CoinGape.
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