Solana sees nearly 10 billion outflow in a week What is causing this
In just one week, Solana (SOL) has experienced a significant decrease in market capitalization, causing concern among cryptocurrency traders and investors. The market cap of Solana, currently the fifth-largest asset in the crypto world, has dropped from $67.69 billion to $57.97 billion in just seven days, according to recent chart information from Finbold.
This decline in Solana’s market cap can be attributed to the overall bearish sentiment in the crypto sector, as well as the lack of onchain activity on the Solana network and stagnant demand from derivatives traders.
Furthermore, LucieShib, a marketing executive from Shiba Inu (SHIB), has issued a warning to the Solana community, particularly those participating in airdrops, about the possibility of fake accounts posting SOL addresses. This raises concerns about potential scams and urges members to be cautious.
Due to the dormancy of the Solana blockchain, low interest in leveraged positions, and an increase in scams, there is a possibility of further decline in SOL’s market cap and price. Currently, the price stands at $126.31, experiencing a 7.01% decrease in a day, a 13.18% decrease in a week, and an overall loss of 25.13% on its monthly chart.
However, there are positive projections for Solana’s future. Crypto market analyst CryptoCapo, with a large following on Telegram, believes that Solana, alongside Render (RNDR), has the potential to enter an uptrend chart pattern. This confidence is supported by experts who foresee the possibility of a Solana exchange-traded fund (ETF) in the coming years, pending regulatory approvals and market conditions.
Professional crypto investor Brian Kelly and Bloomberg ETF analyst James Seyffart have both expressed optimism about the potential for a Solana ETF. Kelly sees Solana as one of the top three cryptocurrencies, along with Bitcoin and Ethereum, that will benefit from regulatory changes. Seyffart believes that the establishment of a regulated futures market by the Commodity Futures Trading Commission (CFTC) and the passage of bills like FIT21 could expedite the process of launching a Solana ETF.
It’s important to note that the content on this site should not be considered investment advice, as investing in cryptocurrencies carries risks.
