The crypto market is in a steep sell-off, currently down 7%, led by Solana, Cardano, and Avalanche. The global crypto market has seen a decrease of 4.3%. Bitcoin has been hurt as well, down 2.2% over the past 24 hours. Altcoins are experiencing even steeper declines.
Among major altcoins, Solana has been hit the hardest, losing the most in this downturn. Despite this and other bullish news like the recent approval of spot-traded Solana ETFs in Canada, Solana’s price action has continued to bleed red. They are not alone as other altcoins such as Cardano, Avalanche and Chainlink face significant losses as well.
Solana's Price Decline
Currently, Solana’s price is down about 5.6% over the last 24 hours. On a monthly measure, Solana is actually down 2.8%. And Solana… Solana has completely recovered with some of the largest gains! For the week, it was up 17.5%, closing at $125.32.
This recent decline has occurred in the face of largely good news, some of it quite remarkable, including Canadian regulators’ approval of Canadian spot-traded Solana ETFs. These Solana-backed ETFs are set to launch on Canadian markets later this week.
Solana’s SOL token is now trading nearly 50% below its all-time high of $262.56 reached on Jan. 19. The drop can be justified by the general market correction, alongside the bad press Solana’s meme coins have been bringing the chain.
Altcoins Follow Suit
Other altcoins are experiencing significant losses. Cardano is currently down 5.5% in the past 24 hours and down 16.5% month-over-month. Avalanche is down 5.8% in the last 24 hours. Chainlink has been doing much better, and is down only 3.7% over the past day.
Solana based meme coins such as Official Trump (TRUMP) and LIBRA scamming their holders. Taken together, these controversies are stoking the backlash against the Solana ecosystem. The demise of these meme coins might be repricing the whole Solana ecosystem’s perceived value and strength.
Per CoinGecko data shared above by Wu Blockchain, Solana has indeed emerged as the biggest altcoin by losses. Undoubtedly, the wider altcoin market is facing potential downside volatility.
Market Overview
Like all other speculative assets, we are in an intense cryptocurrency correction period now. Regulatory issues, macroeconomic uncertainty, and profit-taking after a huge run-up might all be at play regarding the current downturn.
Bitcoin, the original and largest cryptocurrency by market cap, is down as well, having lost 2.2% over the last 24 hours. The underlying market mood is still one of extreme caution as investors continue to digest what’s happening around them.
