What is happening as nearly 10 billion is withdrawn from Solana within a week
In just one week, the market capitalization of Solana (SOL) has experienced a significant decrease of nearly $10 billion, leading to concerns among cryptocurrency traders and investors. Solana, currently the fifth-largest asset in the crypto world, saw its market cap drop from $67.69 billion to $57.97 billion in just seven days, according to recent data from CoinMarketCap.
This decline in Solana’s market cap coincides with the overall bearish sentiment in the crypto sector, as well as the lack of onchain activity on the Solana network and stagnant demand from derivatives traders.
Adding to the worries, LucieShib, a marketing executive from Shiba Inu (SHIB), issued a warning to the Solana community, particularly those participating in airdrops, about the possibility of fake celebrity accounts posting SOL addresses and potential scams.
The current price analysis of Solana reveals that the dormancy of its blockchain, low interest in leveraged positions, and an increase in scams could further impact SOL’s market cap and price. Currently priced at $126.31, SOL has experienced a 7.01% decline in a day, a 13.18% decline over the week, and a 25.13% loss on its monthly chart.
However, there are some optimistic voices in the market. CryptoCapo, a pseudonymous crypto market analyst, shared with his 90,000-strong Telegram subscriber audience that he believes Solana, along with Render (RNDR), could enter an uptrend chart pattern soon. He even mentioned adding more to his SOL and RNDR long positions.
This confidence is supported by experts who speculate on the possibility of a Solana exchange-traded fund (ETF) in the future, pending regulatory approvals and market conditions. Experts like Brian Kelly, a professional crypto investor, and James Seyffart, an ETF analyst at Bloomberg, have expressed their belief in the potential of Solana. Kelly stated in an interview that Solana could be one of the “Big Three” cryptocurrencies in this cycle, while Seyffart mentioned the possibility of an ETF happening within a few years of a regulated futures market.
It’s important to note that this article does not provide investment advice and that investing in cryptocurrencies carries risks.