The charm of the Solana ecosystem experienced a temporary dip this week, with native tokens from major projects showing signs of a retreat from multi-week bull runs, suggesting profit-taking among early investors.
Solana Ecosystem Takes a Breather: BONK Drops 13% Amid Profit-Taking Post-Memecoin Craze
According to data from Coingecko, the meme coin bonk (BONK) saw a 13% decline in the past 24 hours, dogwifhat (WIF) dropped by 15%, and the smaller but highly anticipated token analos (ANALOS) took a substantial hit with a decline exceeding 50%. Tokens associated with the decentralized exchange Orca (ORCA) experienced a 9% slide, while Jito’s governance token JTO recorded a 6% drop. SOL prices initially slumped by approximately 4% before making a recovery. However, the downside saw futures traders grappling with $13 million in losses due to liquidations in the past 24 hours.
BONK Takes a Tumble: A 13% Drop Amid Profit-Taking in the Solana Ecosystem Post-Memecoin Frenzy
The recent pullbacks observed in these projects likely signal profit-taking by early investors who had enjoyed substantial returns on their initial positions as prices surged. The surge in prices seems to have rewarded these investors handsomely.
In contrast, trading volumes on Solana-based decentralized exchange (DEX) applications have remained robust, with a noteworthy $1.44 billion worth of tokens changing hands in the past 24 hours. This accounts for a significant 26% of all DEX trading volumes across the crypto space, surpassing the usual heavyweights Ethereum, Arbitrum, and BNB Chain.
The Solana ecosystem witnessed a significant surge earlier this month, particularly driven by the bonk tokens, which embarked on a multiweek run, registering an impressive over 1,000% gain. This momentum even secured listings on influential exchanges such as Binance and Coinbase. The increased activity catalyzed the network, with Solana’s Saga phone prices soaring to over $5,000, a notable feat considering its previous struggle to sell out just as recently as October. The SOL market capitalization swiftly surpassed that of other major tokens.
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