Solana (SOL) is experiencing a liquidity crisis affecting trading volumes and open interest. Let's explore the current market situation and interesting facts about the SOL blockchain.
Liquidity Crisis in the Solana Market
According to Artemis, on March 17, the total trading volume on Solana-based DEX reached a new low since the beginning of the year. Trading volume has been consistently declining since January tenth. By Sunday, the daily trading volume fell to $988 million, which is 97% lower than the peak value. This indicates a decline in interest from traders and liquidity providers. Meanwhile, the futures market is witnessing a drop in open interest in Solana. As of this writing, the figure stands at $4.04 billion, down 24% from a month earlier. This trend shows a lack of strong market confidence in SOL's prospects. Against this backdrop, the price of the cryptocurrency may enter a prolonged decline.
SOL Price Forecast: Possible Drop to $108
At the time of writing this analysis, SOL is trading at $123.45, having fallen 3.1% in the past 24 hours. The cryptocurrency holds above support at $120.72. If bearish pressure intensifies, the price may lose this level, in which case the token may return to levels near $108.23. On the other hand, if demand for SOL resumes, the price will have a chance to rise to $136.62. A successful breakout of this level could push the coin's value to $182.64.
Interesting Facts About the Solana Blockchain
Five years ago, on March 16, 2020, one of the largest and most popular blockchains, Solana (SOL), often called 'the killer of Ethereum,' was launched. Despite its successes, Solana occasionally experiences disruptions. The largest-scale failure occurred in September 2021, when the network was unavailable for about 17 hours due to transaction overload. In February 2024, the blockchain was down for five hours. Anatoly Yakovenko, a former Qualcomm engineer, created Solana in 2017, presenting the project's white paper. Its primary goal was to solve scalability issues of existing blockchains. The first block on the SOL blockchain was mined on March 16, 2020, at the cusp of the COVID-19 pandemic. Solana was named after Solana Beach in California, where Yakovenko lived while working at Qualcomm. The Solana blockchain launched with a unique Proof-of-History (PoH) consensus mechanism, significantly increasing transaction processing speed with cryptographically secured timestamps. Since 2020, the total number of transactions processed by Solana exceeds 408 billion. The blockchain's theoretical throughput is up to 65,000 transactions per second (TPS), though such figures haven't been reached yet. At its peak, the blockchain handles 2,900 TPS, 46 times Ethereum's capability. On November 18, 2024, Solana recorded a record number of daily active users—6.4 million addresses. The total market value of Solana ranks sixth, having peaked at $125 billion. In April 2023, Solana Labs' subsidiary, Solana Mobile, launched the Android-based Solana Saga smartphone. In September 2024, developers unveiled a new phone model, Solana Seeker, which supports AI technology.
Despite current challenges and a liquidity crisis, Solana remains a significant player in the cryptocurrency market. Its interesting facts and achievements highlight its importance and developmental potential.
