Market Struggles Continue for Solana (SOL) and Cardano (ADA)

By: Eliza Bennet

As the crypto market grapples with the headwinds generated by Bitcoin, crypto assets such as Solana (SOL) and Cardano (ADA) have experienced heightened volatility. This is evident from the recent reports indicating that these coins had led the crypto market into a sea of red, marked by a slump in some of the highest traded tokens. Furthermore, Solana is proving to be particularly unstable, with a period of rapid price increases followed by a swift, harsh correction to its current declining value.

Having risen by an alarming 500% since October 2023, the value of Solana's native token, SOL, has been on a notable downturn for the past three weeks. A combination of excessive optimism, delayed launches and disappointing airdrop results have led to this shift in events, causing investors to lose their initial confidence in the asset. There is a continual denial of the coin surpassing the $100 mark and SOL is currently trading at $89.72. This negative spiral has seen SOL endure a 2.4% and 6.7% downturn in its value over the last 24 hours and seven days, respectively.

Further to the decline of SOL's token price, and despite a slight drop-off in transactions and active dapp users over the past week, it's worth noting the positive signs of growth the Solana network is still indicating. This includes an all-time high of 15.4 million in SOL tokens locked into Solana's total value, which represents an impressive 60% growth from the previous month, and a substantial increase in network activity including transactions volumes.