Solana’s recent journey has been a rollercoaster. In December, it performed spectacularly, exceeding $126, fueled by a vibrant ecosystem buzzing with the Jito token, meme coins like BONK, and even selling out the Saga phone through targeted airdrops.
This surge, however, proved to be fleeting. Two weeks later, a 33% plunge sent shockwaves through the crypto community, leaving investors and experts debating the reasons behind the sudden reversal.
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To understand this sharp turnaround, we need to take a few steps back to November. Back then, Solana was trading at around $38. However, a surprising surge sent the token flying.
The Jito token, hitting major exchanges in early December, rapidly ballooned to a market cap exceeding $300 million. This, coupled with other developments, propelled its price to nearly $127, marking a nearly fourfold increase in just two months.
The value locked in Solana applications also flourished, quadrupling from $400 million to $1.53 billion, further bolstering its appeal. Even Solana’s trading volumes and network fees surpassed Ethereum’s every week, highlighting its emerging prominence.
However, December witnessed a shift. The initial excitement cooled as profit-taking took hold, and the flow of new launches slowed down. Investors began diverting their focus toward opportunities on other blockchains, causing Solana’s market presence to diminish noticeably. The diminishing market presence and a lack of sustained momentum triggered the rapid price decline.
JTO, BONK, and Dogwifhat Experience Drops
The initial excitement surrounding meme coins on the Solana network also saw a downturn. Tokens like JTO, BONK, and Dogwifhat, which witnessed meteoric rises, are now facing substantial drops.
JTO, having surged by 3,200%, has dropped by over 70%. BONK, with a peak surge of over 1,000%, is down more than 73% from its December peak, while WIF has fallen nearly 80%.
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Even with the recent news of OKX listing JTO and BONK on its perpetual futures market, these tokens continue to struggle. Lesser-known tokens like POPCAT and CHIPI are also experiencing declines of more than 90% from their all-time highs.
Due to those recent downturns mentioned above, Max Keiser, the host of The Keiser Report, reaffirmed his previous opinions about Solana, saying, “The rug pull has begun.” Technical analyst Pentoshi, agrees, predicting a future drop in SOL’s price and a chance to bid in the $70 region.
Despite Solana’s recent price drop, some crypto enthusiasts are still confident about SOL’s potential to exceed the $200 price in 2024. Investors and experts are closely monitoring these developments surrounding SOL, to see how it responds to the rest of the market and if it can surge as we approach the Bitcoin halving.
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