Amid global conflicts, the price of Solana token fell to its lowest since April at $127 before recovering to $146. This article explores the reasons for the drop and the implications for the market.
Price Drop and Recovery of Solana
The Solana token fell to $127, its lowest level since April. Following a ceasefire announcement, there was a recovery, bringing the price up to $146. Despite this, SOL closed down 3% for the week, with its total value locked (TVL) slipping below $10 billion.
Impact of Conflict on the Crypto Market
Reports indicated that over $1 billion in crypto liquidations occurred due to fears stemming from the Middle East conflict. Bitcoin dropped below $100,000 before recovering. While Solana’s market cap declined by 4%, its trading volume increased by 12%, indicating heightened on-chain activity.
Development of Solana’s Ecosystem
CoinMarketCap noted that Solana’s perpetual DEX volume surged, outperforming centralized exchanges with 96% higher liquidation activity. In the stablecoin sector, Fiserv plans to launch FIUSD, a Solana-based digital dollar aimed at banks and merchants, backed by recent regulatory clarity.
Despite short-term challenges related to conflicts and liquidations, the Solana ecosystem shows resilient metrics due to increased activity in DeFi and infrastructure development.
