Solana ecosystem struggles – Traders, should you be worried?
The post Solana ecosystem struggles – Traders, should you be worried? appeared on BitcoinEthereumNews.com.
SOL has declined by 27.91% over the past month. The Solana ecosystem could be collapsing as the market remains in a bear market. Over the past month, the Solana[SOL] ecosystem has struggled to grow. While it was presented as a replacement for Ethereum [ETH], this dream has now become far-fetched. The prevailing conditions in the Solana ecosystem have left analysts worried about a potential crash. Source: Alphractal Alphractal founder Joao Wedson has expressed his worries over a potential collapse of the Solana ecosystem. According to Wedson, the SOL ecosystem risks a collapse with the market stuck in a bear market. Also, the Solana market has shown poor performance compared to BTC. For context, the Solana ecosystem comprises 11 cryptocurrencies, including Render [RNDR], Dogwifhat [WIF], Jupiter [JUP], Bonk [BONK], Book Of Memes [BOME], GMT [GMT], Jito [JTO], Raydium [RAY], Pyth Network [PYTH], and Tensor [TNSR]. For example, at press time, WIF declined by 54% in 30 days, BOME dipped by 50%, Bonk by 44.4%, Jupiter by 15.9%, Raydium by 42%, and PYTH dropped by 25.95%. What this means is that all assets under the Solana ecosystem are in the bear market. What’s happening with the Solana ecosystem? The Solana ecosystem has become highly speculative, leading to exploitation by whales and bots, and causing prolonged market swings. This speculative activity has created a memecoin frenzy for developers, establishing a win-win bubble and resulting in extreme market speculation. Historically, when a network becomes too speculative, it experiences a liquidity crunch, with projects dying as big players take profits. This could be the case with Solana, as most projects are sustained by hype and flash trading, lacking organic growth. These types of market structures usually lead to a sharp decline. Therefore, there is a possibility that a major reset of the network could be…
Filed under: News - @ February 21, 2025 1:16 am