Although Solana’s price showed resilience with the largest token unlocking, it continues to struggle with pressure on the increase in Memecoin Market.
Solana (SOL) ranged from $ 261 on January 18 to $ 143 from $ 143 to $ 143 on January 18 since the official Trump (Trump) memo began.
According to Dan Hughes, the founder of the decentralized financial platform, Radix, the increase in the appetite of investors in Memecoins restricts the price performance of Solana.
SOL/USDT, 1 day chart. Source: COINTELEGRAPH/TradingView
Memecoins said, “There is no tendency to draw a lot of external capital flow. Hughes added to Cointelegraph as follows:
“In the case of Trump, most inbound liquidity has been leaked from other encryption assets, selling encryption portfolios and purchasing Trump with extreme FOMO (fear of missing).”
“You can see the influence in the market where everything was red for several days except Trump and Solana, and it was displayed as a funny vampire.”
SOL/USDT, 3 months chart. Source: COINTELEGRAPH/TradingView
Memecoins may attract significant parts of solana’s new liquidity. According to Lookonchain, since January 1, Circle has surpassed USDC (USDC) more than $ 87.5 billion since January 1, but Solana’s price has fallen more than 24% despite its new liquidity.
relevant: Wintermute withdraws $ 38m SOL from Binance ahead of $ 2B Solana Unlock.
Nevertheless, Solana’s price is the largest token lock on March 1, and it has restored more than $ 140 despite the release of 12 million SOL tokens that distribute over 12 million SOL tokens with 11.2 million SOL tokens.
Industry watchers were concerned about the significant drop in SOL because companies such as Galaxy Digital, Pantera Capital and Figure purchased for $ 64 per SOL in FTX auctions.
relevant: Binance is not Solana and other token holdings ‘dumps’ -spokesman
Macro events, rug pools limit institutional password investments.
HUGHES has continued to limit the rise in the encryption market, and Hughes added.
“The event of the world stage has a greater impact than the previous cycle. The much larger proportion of investment capital is institutional, and we must consider wider markets, factors and variables when we make much more careful and decisions (…). ”
“Continuous rugs, hacking, and losses will be exhausted, which will take some time for the remaining dust to settle down and the imitation returns.”
Investor sentiment is still recovering from $ 1.4 billion by BYbit Hack on February 21, making the biggest hack in cryptocurrency history.
https://www.youtube.com/watch?v=q980_6djfyu
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