Solana's price saw a sharp 36% decline, reaching $121.35, causing concern amid ongoing crypto market volatility.
Solana Price Decline and Team Response
Solana experienced a sharp decline, falling by 36%, which raised concerns among investors and traders. Co-founder Anatoly Yakovenko addressed the volatility, emphasizing the continued effort to build and improve Solana's infrastructure. The team maintains that the fundamentals remain strong despite current market fluctuations.
Investor Caution Amid TVL Drop
As a result of the drop, investors exhibited caution, noting the downward trend. The Solana ecosystem experienced an 18.3% decrease in Total Value Locked (TVL) over the week. Financial analysts and experts have mixed views on the implications, with some viewing it as a healthy correction, while others point to the continued strength of Solana's long-term fundamentals.
November 2023 Decline Mirrors Current Drop
Solana's decline echoes a similar event from November 2023, when the price fell 40% after FTX's collapse. That situation corrected in about three months, demonstrating a recovery pattern after significant declines. Experts like Raoul Pal and Lark Davis highlight the potential for market correction. Lark Davis noted that overleveraged positions could have exacerbated the decline, suggesting a potential buying opportunity for long-term investors.
Solana's recent declines reflect ongoing volatility in the crypto market. Despite this, experts point to strong fundamentals and potential for recovery.
