Solana's SOL token has fallen below $200 after failing to break resistance. This drop coincides with a broader market decline, but SOL underperformed with a 5.1% correction. Here are key concerns:
- Decreased On-Chain Volume: Solana's on-chain transaction volume has dropped 30% in a week, ranking second-worst among top blockchains.
- DApp Activity Slumps: Usage of popular Solana DApps like Orca, Raydium, and memecoins has significantly declined.
- Memecoin Frenzy Fades: Solana memecoins, a major user driver, have seen sharp price drops in the last month.
However, there are some bright spots:
- TVL Reaches 2-Year High: Total Value Locked (TVL) on Solana hit a two-year high, driven by staking platforms like Lido and DeFi protocols like Orca.
- Derivatives Market Shows Resilience: While the price dipped, futures contracts maintain a premium, suggesting some bullish sentiment from professional traders.
Overall, SOL's short-term outlook is cautiously bearish due to the drop in on-chain activity. However, whale and market maker optimism in the derivatives market indicates potential support around $180.
December 2024, Cryptoniteuae