Solana’s price dips below $170 due to dropping network activity, memecoin scams, and FTX token unlock—trust issues growing.
Yo, Solana’s price is plummeting, falling below $170, and everyone’s talking about it. The coin is down 9% today, at $167.57, and it’s not looking good. So, what’s happening?
Overall, network activity is declining. Not as many users are utilizing Solana for applications such as trading and DeFi initiatives, and when the network’s idle, the price goes down. Crypto analysts also pointed out that major holders are cashing out coins, with accounts holding more than 100 SOL decreasing by 2.24% in the recent past.
On top of that, Solana’s DEX volume is tanking by 24%, while Binance Smart Chain is thriving, with its DEX volume up nearly 50%.
But the real kicker? Memecoin scams. Solana’s had some sketchy memecoins recently, like the LIBRA token that crashed by 94%, leaving traders with huge losses. It turns out, the same wallets behind LIBRA were involved in the Melania Trump memecoin scam. Yeah, not a good look.
Investors are losing faith, and with $2.06 billion in SOL about to be unlocked from the FTX bankruptcy, things could get even worse. Solana’s in a tough spot right now, with FUD hitting hard.
Also Read: Geth Calls on Ethereum Validators to Upgrade to Latest Version for Network Stability
