Solana's native token, SOL, saw an 8% drop after briefly spiking. Traders are questioning the causes behind this volatility.
SOL's Trials: The Impact of ETF and New Legislation
The drop in SOL's price may be influenced by anticipation of a Solana-based ETF and the development of tokenized assets in the network. Nonetheless, these factors seem weak against other economic and regulatory changes.
Less Interest, Less Value: How Solana is Losing Ground
Decreased interest in DApps and memecoins negatively affects Solana. Furthermore, the US government's lack of plans to purchase altcoins reduces investment trust, also driven by falling on-chain volumes.
A New Reality for Solana: Shifting DEX Landscape
Solana has lost its leading position in DEX volumes, giving way to BNB Chain and Ethereum. This indicates a reduction in its market share despite some distinctions in user experience and decentralization.
While fundamentals do not indicate an imminent rally for SOL, Solana's unique features could contribute to its future growth.
