Breaking Solana News – Solana Market Cap Falls: What Caused Solana to Lose $3 Billion from Its Market Cap Amid Broader Turmoil?
Breaking Solana News – In the last week, Solana (SOL) has experienced a negative run that has caused its market value to drop by billions of dollars and roughly 5% since yesterday. As of June 6, the coin was trading for $170, having made significant gains over the preceding 12 months. However, on Monday, the price of Solana dropped as low as $123.42.
In the last week, SOL has dropped by at least 11%, which is in line with the overall reduction in the value of digital assets due to unfavorable investor sentiment in the market. Helius Labs’ co-founder and CEO, Mert Mumtaz, made hints that the headwind would persist this week and stated that he had sold all of his cryptocurrency holdings because he thought that “crypto is over.”
Meme Coin Increase Negatively Affects Solana
The sharp fall in Solana’s value can be attributed to both general market conditions and particular difficulties the cryptocurrency encounters. Furthermore, Solana—which is generally renowned for its high throughput and inexpensive transaction costs—has been up against competition from other blockchain platforms as well as network outages.
Although Solana has demonstrated in the past that it might recover, recent trading in meme coins has tugged it in both directions, according to Andrew Kang, a co-founder of Mechanism Capital, an investment business that focuses on cryptocurrencies. Recently, an increasing number of celebrities have contributed their names to new meme coins that are overtaking the market. In May alone, at least 500,000 meme coins were introduced.
Right-wing internet personality Andrew Tate‘s promise to “CRASH THE SOLANA NETWORK” may have signaled the beginning of the end for Solana’s meme currency craze. Tate asserted that he had burnt more over $38 million worth of TOP G, a meme coin based on Solana, raising its price by more than 130% and eliminating about 58% of its supply. Tate insisted he didn’t directly benefit from the action despite the significant burn, which reduced TOP G’s market worth to more than $65 million.
FAQ
Why is Solana Value Dropping?
According to recent comments made by cryptocurrency expert Andrew Kang, Solana’s (SOL) positive momentum may be waning. Even while it has historically performed well, the combination of institutional ETFs and the unpredictability of meme coin trading may cause a large decline in price.
What is the Meaning of Network Outages?
Time periods during which a system is unavailable due to mechanical or technological problems are referred to as network outages. The term outage duration or downtime describes the amount of time that a system is unable to deliver or carry out its main purpose.
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