Solana’s Price Plummets Over 50% Amid Scandal and Market Decline
Solana’s price has fallen over 50% since its January peak, hitting $132 amid trading decline linked to the Libra token scandal. The cryptocurrency sector faces broader challenges with Bitcoin and others also declining, influenced by geopolitical tensions and inflation concerns.
Solana’s price has experienced a significant downturn, dropping over 50% from its all-time high due to diminishing trading activity and concerns linked to the Libra meme token scandal. On Tuesday, the SOL token reached a low of $132, its lowest value since October, before slightly recovering to $144, reflecting a 5% decrease in the past 24 hours. Earlier this year, the asset peaked at $293 in January.
The latest decline, which has rapidly escalated over the past 11 days, follows a substantial loss of the Libra token—reportedly losing approximately 90% of its value in mere hours, prompting accusations of fraud and political fallout involving Argentine President Javier Milei. Despite promoting this token to support local businesses, President Milei later retracted his statement and distanced himself from details of the token’s formation.
Recent trading volumes on Solana’s decentralized exchange reached a five-week low, dropping to $2.61 billion last week. This decline has stemmed from faltering interest in meme coins, following numerous incidents of rug pulls and associated scandals, which significantly dampened activity on the platform. Meanwhile, despite these challenges, several fund issuers remain optimistic, having filed applications based on Solana’s spot price with the SEC.
The downturn of SOL aligns with a broader slump in the cryptocurrency market, as Bitcoin fell to nearly $86,000, significantly below its peak of over $108,000. Other cryptocurrencies, such as Ethereum, Dogecoin, and XRP, similarly experienced sharp declines. Investor apprehensions regarding potential trade wars, rising inflation, and political instability have prompted a retreat from cryptocurrencies and other high-risk investments, although some recovery was noted across major assets in recent hours.
In tandem with the cryptocurrency market’s decline, stock indices like the tech-focused Nasdaq and S&P 500 also took a hit, falling more than 1.45% and 0.5% respectively in Tuesday’s trading, reflecting a broader trend from recent highs achieved in the past months.
In summary, Solana has faced a substantial price decline, influenced by the Libra token debacle and a general downturn in market sentiment. As trading volumes slump and investor confidence wanes, the outlook remains cautious despite ongoing ETF applications that may reflect potential recovery. The broader digital asset market is similarly impacted, indicating a period of volatility for cryptocurrencies.
Original Source: decrypt.co
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