Solana’s (SOL), which has lost its hold on the market for memecoins, is experiencing challenges. This can be seen by the 2% drop in the last week.
CoinShares’ data shows that Solana saw a record $39,000,000 outflow, while Bitcoin and Ethereum experienced inflows totaling $42,000,000 and $4.2,000,000, respectively.
The Solana Blockchain, where the meme tokens were previously dominant, has seen a steep decline in trading volume.
The rise and fall of Tron SunPump
Solana has been struggling recently, as evidenced by the performance of the top meme tokens — WIF, BONK BOME and POPOCAT, which all have fallen up to 30% over the past seven days.
The downturn is a result of the Tron SunPump launch, which has become a meme token generator and is challenging Solana in its dominance over the meme coin market.
SunPump is a Tron DAO initiative spearheaded by Justin Sun. It aims to take over the market for meme coins that Solana led historically.
In its first week, the platform attracted 10,000 users.
Sun believes the platform has great potential. He expects user numbers to soon double and predicts a boom in meme tokens at top centralized exchanges such as Poloniex or HTX.
SOL current pricing
Solana was trading at $143.01 as of the writing. This is after a drop of 2.01% in the past 24 hours. Market analysts believe that the altcoin is showing signs of weakness and further drops could be imminent.
The crypto analyst Ali has highlighted a potential sell signal in Solana’s 4-hour graph, which indicates a possible price drop.
Santiment echoes this sentiment. It reports that Solana’s weighted feeling has dropped significantly, reflecting a growing negativity in the market.
Coinglass data also shows that Solana’s long/short ratio has fallen sharply, which supports the negative outlook.
There is some optimism left. Solana’s funding rate is down, and historically, prices move in the opposite direction of funding rates. This suggests a potential bullish turn.
Solana could experience a rebound if it can surpass its Simple Moving Average of 20 days. It may reach $163 or, with continued momentum and growth, $186, even $200.
Market participants are closely monitoring the dynamics of competition between Solana’s SunPump and Tron’s SunPump.
SunPump, a Tron product that has gained traction in recent months, could unseat Solana PumpFun as the leader of the meme coin market.
The outcome of the rivalry between meme coins will shape the future for the crypto-ecosystem as the market develops.
The post SOL’s record outflows are due to Tron’s SunPump challenging Solana’s memecoin supremacy may change as new developments unfold.
