- SOL has decreased 27.91% over the last month.
- Since the market remains in the bear market, the Solana ecosystem can collapse.
Over the past month, the Solana (SOL) ecosystem has struggled to grow. It was presented as an alternative to Ethereum (ETH), but this dream is now far away.
The general conditions of the Solana ecosystem were worried about potential conflicts.
Source: Alphractal
Alphractal founder Joao Wedson expressed his concern about the potential collapse of the Solana ecosystem.
According to WEDSON, the SOL ecosystem is at risk of collapse with a market trapped in the bear market. In addition, the Solana market has a lower performance than BTC.
In the context, the Solana ecosystem consists of 11 cryptocurrencies. Render (RNDR)Dogwifhat (WIF), Jupiter (JUP),,, Bonk (bonk), MEMES (BOME), GMT (GMT), Jito (JTO), Raydium (Ray), PYTH Network (PYTH) and Tensus (TNSR).
For example, in the press time, the WIF decreased 54%in 30 days, BOME was 50%, Bonk, Jupiter 15.9%, Raydium, 42%, and Pyth by 25.95%.
This means that all the assets of the Solana ecosystem are in the Bear market.
What is happening in the Solana ecosystem?
Solana ecosystems are very speculative, leading to exploitation of whales and bots and causing long -term market swings.
This speculative activity created a Memecoin craze for developers, setting up a win-win bubble and causing extreme market speculation.
Historically, if the network is too dumped, a fluid crisis occurs and the project dies when a large player makes a profit. Most projects last by over -advertising and flash transactions, which can be the case for solana because of lack of organic growth.
This type of market structure usually leads to a sharp decline. Therefore, there is a possibility that the main reset of the network is ahead.
What is the following of Alt ALT?
The entire Solana ecosystem has been expanded to SOL when the performance is low. The decrease market cap proves this.
Source: Mesari
SOL’s market cap decreased significantly from $ 150 billion to $ 100 billion in press time. As a result of a significant decrease in market cap, investors withdraw their capital and indicate that the demand for investors is also decreasing.
In addition, it means a powerful weakness, which can cause large -scale selling in danger.
Source: Defillama
SOL’s total value lock (TVL) has also decreased from $ 12 billion to $ 8 billion. TvL and market cap decline suggests large -scale capital outflows of networks. As the liquidity decreases, volatility and slips can increase.
Therefore, the general market situation can lead to more losses by suggesting harmful structures to Solana.
If investors continue to pull capital, the SOL can fall to $ 164. On the contrary, if the guess is returned, the sol is to recover $ 200.