Solana Price Struggles: What’s Behind the 8% Rejection After $147?
Solana Price Struggles – Solana’s native token, SOL, experienced an 8% price rejection after briefly touching $147 on March 25. Over the past three weeks, SOL has faced difficulty in reclaiming the $150 level, leading traders to question whether the bullish momentum, initially driven by memecoin speculation and the rise of artificial intelligence sectors, has faded. Currently, SOL is priced at $132.08.
The Potential Impact of a Solana Spot ETF
Some analysts suggest that Solana could benefit significantly from the eventual approval of a Solana spot ETF in the U.S. Additionally, the expansion of tokenized real-world assets (RWAs) on the Solana network, such as stablecoins and money market funds, could enhance the token’s long-term potential. However, as memecoin mania begins to subside, on-chain volumes have decreased, raising concerns about SOL’s ability to reclaim its former highs above $150.
Mobile Adoption and Solana’s Future Outlook
According to Nikita Bier, co-founder of TBH and Gas startups, Solana is well-positioned to break out in the mobile space, benefiting from a constructive regulatory environment under U.S. President Donald Trump. The memecoin frenzy also introduced millions of new users to Web3 wallets and decentralized applications (DApps), which could contribute to a more robust Solana ecosystem.
Declining DApp Revenues and Fee Reductions
Despite these positive indicators, Solana is facing challenges with a decline in DApp revenues and transaction fees. As of March 24, DApp revenues dropped from $23.7 million to $12 million, while base layer fees fell from $6.6 million to $3.6 million. This decline in on-chain activity is a concern, particularly as Solana faces mounting competition from other blockchains such as BNB Chain and Ethereum.
Loss of Market Leadership
Solana has lost its dominance in the DEX volume market to BNB Chain, which, despite having 34% less TVL (total value locked), has overtaken Solana in terms of trading volume. Furthermore, the US government’s decision not to acquire altcoins for its strategic reserve also negatively impacted Solana’s appeal.
In conclusion, while Solana has a unique combination of an integrated user experience and a degree of decentralization, the current decline in on-chain activity and the competition it faces from other blockchains suggest that a rally above $150 remains uncertain in the near term.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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