CDS Crypto News Significant Liquidations in SOL Market and Decrease in Solana Transaction Volume Amidst Proposal for Aave v3 Deployment on Neon EVM
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Significant Liquidations in SOL Market and Decrease in Solana Transaction Volume Amidst Proposal for Aave v3 Deployment on Neon EVM

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Significant Liquidations in SOL Market and Decrease in Solana Transaction Volume Amidst Proposal for Aave v3 Deployment on Neon EVM

Significant Liquidations in SOL Market and Decrease in Solana Transaction Volume Amidst Proposal for Aave v3 Deployment on Neon EVM

Crypto News – In the last 24 hours, the Solana (SOL) cryptocurrency has experienced significant price fluctuations, leading to a notable liquidation of long positions on centralized exchanges. This market turbulence has resulted in over $7 million worth of SOL positions being liquidated, with the majority, exceeding $6 million, consisting of long positions.

This trend extends beyond Solana, as the broader cryptocurrency market has witnessed over $88 million in long position liquidations during the same period. This contributes to an overall total of $126 million in liquidations across various centralized exchanges, as reported by CoinGlass.

In the context of derivatives markets, liquidations occur when a trader’s position is automatically closed due to a lack of sufficient funds to cover losses. Such scenarios emerge when market movements are adverse to the trader’s position, leading to the erosion of their initial margin or collateral.

The transaction volume of Solana’s tokens has also seen a downturn. After reaching a 12-month peak in the first week of January, as per The Block’s Data Dashboard, the economic throughput value of SOL and SPL tokens on the Solana blockchain has declined from nearly $47 billion to about $34 billion in just over a week.

Significant Liquidations in SOL Market and Decrease in Solana Transaction Volume Amidst Proposal for Aave v3 Deployment on Neon EVM

Additionally, the number of active addresses on the Solana network has decreased from a yearly high of approximately 981,000 on December 21 to around 599,000 at present.

In a related development, the Solana network has been buoyed by news that the Aave governance body is contemplating a proposal to deploy Aave version 3 (v3) on the Neon EVM. Neon EVM is a smart contract platform that enables Ethereum decentralized applications (dapps) to operate on the Solana network.

This proposal, initiated by the Neon Foundation and Aave Chan Initiative, aims to initially introduce Aave’s lending services to the Solana blockchain as a minimal viable product (MVP). Currently, the proposal is in its “temperature check” phase, where members of the Aave community are invited to provide their insights and feedback on the proposed integration.

Should this proposal receive approval, it would facilitate Aave’s use of Solana’s liquidity for its lending services. The proposal details that a version of Aave v3 has already been successfully deployed on Neon EVM’s developer-focused testnet (devnet).

Significant Liquidations in SOL Market and Decrease in Solana Transaction Volume Amidst Proposal for Aave v3 Deployment on Neon EVM

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