 ▲ Solana (SOL) |
Solana (SOL), one of Ethereum (ETH) rivals, temporarily recovered to $151 on the 16th (local time). However, on the 18th (local time), it fell below $135, hitting a 45-day low, before recovering to the $140 level.
Cointelegraph, a cryptocurrency media outlet, diagnosed that the bearish momentum is likely to continue when looking at various indicators, including the Solana on-chain network and demand for leveraged positions.
The media paid attention to data analysis results from DappRadar, which showed that in addition to the Ethereum Layer 1 alternative network, the level of pressure on Solana has increased from the total deposited assets (TVL) of the Ethereum Layer 2 ecosystem, which maintains more than $40 billion. did. Some blockchain networks, including Arbitrum (ARB), Base, and Optimism (OP), have already surpassed Solana in DApp (decentralized finance) activity.
In particular, Solana's weekly trading volume was $589 million, while Arbitrum and BNB Chain's weekly trading volume was estimated at $9.5 billion and $4.9 billion, respectively.
Accordingly, Arthur Hayes, co-founder and former CEO of virtual asset exchange BitMEX, predicted that Solana will be pushed out of its position as the best base layer DApp network in one to three years.
In addition, the media diagnosed that the fact that the S&P 500 index reached an all-time high on the 17th also had a partial effect on the decline in interest in Solana. A rise in stock prices was recorded, centered on technology stocks.
However, many investors expect the upside potential of the cryptocurrency market to decrease, considering high interest rates and the hawkish outlook of the U.S. Federal Reserve. This is a factor that adds to the burden on most altcoins, unlike Bitcoin (BTC) and Ethereum, which record capital inflows from institutional investors mainly through spot exchange traded funds (ETFs).
