Main takeout:
SOLANA’s Aboriginal token, SOL (SOL), decreased by 10% from $ 185 on May 23 to a rapid rejection. Currently, the $ 167 mark is the lowest a week, and traders have questioned why the recent decline and the SOL can return to the $ 142 support level.
Despite the price drop, SOL holders can take some comfort in the position of Solana as the second largest network in terms of TVL (Total Value Locked). Nevertheless, Ether Leeum’s dominance is still not supported by a wide range of tier -2 ecosystems that provide high fees and high scalability.
Ethereum has grown more powerful, but Solana’s current $ 11 billion has increased 14% over last month. Solana’s remarkable development has increased by 48% of Raydium’s deposits and 28% of Marinade’s TVL. But growth was more humble in other distributed applications (DApps) such as Jupiter, Camino and Drift.
Solana volume and fees surpass Etherrium.
Bulls is confident that the position of Solana is safe by efficiently integrating the Web3 application with mobile wallets. According to DEFILLAMA’s data, Solana’s distributed exchange (DEX) trading volume has reached $ 94.8 billion over the last 30 days, surpassing Ethereum’s $ 64 billion, according to Defillama’s data.
SOL Bears has increased DEX activities in Ethereum’s Layer-2 ecosystem and has reached $ 59.2 billion over the last 30 days. This trend is undoubtedly important, but it has not been converted to higher fees. Ether Reeum allows the roll -up to integrate the data into a blob, reducing costs, and Solana can capture more value in OnChain activities.
This preparation is clear from the fee data. For more than 30 days, Solana has a $ 48.7 million commission compared to Ether Leeum’s $ 36.9 million despite the fact that Ether Lee has a very large deposit base. Meanwhile, the BNB chain lags behind a $ 15.1 million fee despite the recent rise, allowing the project to artificially expand volume levels.
Another factor in investor sentiment is that it is expected to unlock 3,55 million soles between June and August, which is about $ 600 million at the current price. Analysts pointed out that most of these tokens were acquired for $ 64 in bankruptcy FTX/Alameda Estate and potentially limited tokens.
According to Stackingrewards, Solana offers 8%yields for effective tests that are much higher than 3%of Ether, but the supply extends to 5.2%per year. As a result, SOL’s net stage return is lower than the yield provided by many DAPPs in the stablecoin sediment.
SOL suffers from MEV and interests in memo coins decrease.
The high throughput of Solana Network provides trade off, especially in connection with valid incentives (maximum extraction values) connected to MEV. Effective tests can rearrange their transactions to increase their income, which opens the door of sandwich attacks to start a good practice that harms regular traders. According to Dan Robinson, a researcher at Paradigm, MEV is Solana’s “biggest problem.”
Merchants also questions the possibility of long -term survival of Solana -based memo after several rapid weekly decrease. The official Trump (Trump) fell 24%, while FARTCOIN and POPCAT lost 20%, while Pudgy Penguins (PENGU) decreased 17%over the last seven days. Continuous decrease in Dex activity will further compress the performance of the SOL.
Despite this danger, Solana’s strong performance in both Solana’s trading volume and total deposits suggests that there is no immediate sign of performance compared to the wider Altcoin market. However, the scheduled token unlocked for the next few months greatly reduces the probability of the SOL, which relapses $ 200.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.