Solana Plummets: Suffers 15% Drop in a Day, Erasing Weekly Progress

Crypto News- Solana Plummets: Solana (SOL) took a tumble of 15.9% on March 19, dipping to $166, marking its lowest point in five days. This downturn followed a week-long surge that nearly pushed it to $210, boasting a new all-time high market cap of approximately $92 billion.

As of the latest update, SOL managed to claw back some of its losses as market sentiment turned bullish after a day of significant decline. Currently, the token is hovering around $174, with a market cap of roughly $77 billion, according to data from CryptoSlate.

Solana Plummets: Suffers 15% Drop in a Day, Erasing Weekly Progress

The last time SOL saw such levels was on March 14, when it hit as low as $162, sporting a market cap of $71.9 billion.

Despite being one of the day’s biggest losers, SOL remains just slightly below recent peaks and is still up by 15% over the past week. However, the overall market sentiment has been bearish since March 16, with both Bitcoin and altcoins facing downward pressure as bears push prices lower ahead of the Fed’s FOMC meeting.

Solana Tokens Take a Dive: Market Turmoil Sends Prices Plummeting

Solana’s downturn impacted almost all Solana-based tokens, with only 71 out of 85 managing to evade the downward spiral, according to data from CryptoSlate. Notably, LuaSwap (LUA) suffered the most significant losses, plunging by 62%, followed by KING with a 32.3% drop. Meanwhile, the two primary DEXs on Solana, Jupiter (JUP), and Raydium (RAY), experienced declines of 13.27% and 22.17%, respectively.

However, some Solana-based tokens managed to buck the trend. Dexlab (DXL), a DEX launchpad, saw gains of 31%, while the previously hacked DeFi platform Mango (MNGO) recorded a 21% increase. Additionally, eleven other Solana-based assets posted gains ranging from 3% to 13%.

On average, tokens in the category saw a 6.21% decline over 24 hours, slightly less severe than the broader crypto market’s losses of 8.0%.

Is Memecoin Mania Fading? Trends Suggest Shifting Sentiment

The recent surge in Solana’s price was partly fueled by the hype surrounding memecoins, particularly the Dogwifhat (WIF) craze earlier in the month. SOL, like many other tokens, benefited from a robust crypto market that persisted even after Bitcoin’s brief flirtation with all-time highs.

Solana also witnessed significant trading volumes on DEXs, with $2.8 billion in reported volume on March 18, coinciding with an all-time high against the price of Ethereum (ETH).

However, the latest setbacks indicate that Solana’s price in US dollars may not continue to rise indefinitely. Nevertheless, future trends and developments could potentially reignite its price performance.