Solana (Sol) plummets $100, Memecoin Mania cools down

Solana (SOL) price plummeted below $100, triggering crypto market turmoil.

In the past 24 hours, Solana prices have fallen below key support at $100, further exacerbating the bear market trend. SOL price fell more than 14%, once down to $96, before rebounding slightly to about $101 (7:38 a.m. ET on Wednesday). This is the lowest SOL price in 14 months. The decline is also related to wider crypto market volatility and macroeconomic concerns. According to Coinglass data, the SOL price plunge has caused nearly $71 million to liquidate Solana leveraged trading in the past 24 hours.

Global trade tensions intensify market volatility

Benzinga analysts pointed out that multiple factors could lead to overall weakness in the crypto market. Risk aversion among investors has been exacerbated by escalating global trade frictions and new tariff tensions. Concerns about the upcoming recession continue to hit traditional and digital markets, leading to a general decline in major crypto assets.

Solana on-chain indicators predict risks

The data on Solana chain continues to decline. Vaneck's March analysis of Solana's network activity showed:

• Average transaction fees dropped by 66%
• Stablecoin transfers fell by 34%
• Decentralized exchange (DEX) trading activity decreases by 53%

Vaneck also noted that Solana's DEX market share has shrunk significantly, with Solana recently falling to its lowest point since October 2024, months after the network briefly surpassed Ethereum DEX trading volume.

Meme coin craze fades

The main reason for the decline in Solana prices is the cooling of the Meme coin craze. Solana's daily Meme currency trading volume peaked at $12 billion at the beginning of this year, but it had dropped to $720 million by March. Nevertheless, Meme coins accounted for 92% of Solana's total DEX trading volume last month (excluding SOL and stablecoins), highlighting the serious reliance of the network activity on speculative assets.

Institutional investors continue to pay attention to Solana

Although retail sentiment may be weakening, institutional investors' interest is quietly growing. The Chicago Mercantile Exchange (CME) recently launched the Sol futures contract, followed by the first Sol futures ETF. These developments show institutional investors’ confidence in Solana and may pave the way for Solana-based ETFs, which could reshape the future trend of SOL.

PayPal helps Solana develop

PayPal recently incorporated SOL into its crypto products, adding momentum to Solana's long-term development. US users can now buy and sell and transfer Solana through PayPal and Venmo platforms. Despite the recent price decline, the increase in mainstream adoption rates is still worth paying attention to.

The above is the detailed content of Solana (Sol) plummets $100, Memecoin Mania cools down. For more information, please follow other related articles on the PHP Chinese website!