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What’s going on in the Solana market (SOL) and what can we expect with the price of the cryptocurrency?
Solana is experiencing a liquidity crisis
Artemis reports that yesterday’s total trading volume at the Solana DEX, which is based in Solana, reached its lowest level since the start of the year. Since January 10th, trading volume has consistently decreased.
So, on Sunday, the trading volume had fallen to $988 Million, 97% below the previous peak. The decrease in trading volume and interest by liquidity providers is reflected in this dynamic.
The futures market has also seen a decline in the open interest in Solana. The figure is $4.04bn at the moment of this writing, down by 24% from one month ago.
The market is not confident in SOL’s prospects. In such an environment, it is possible that the cryptocurrency’s price will continue to decline.
SOL forecast: Could the price drop to $108?
SOL was trading at $123 45.50 when I wrote this report. In the last 24 hours, it has dropped 3.1%.
Cryptocurrency is currently holding at $120.72. The price could drop if the pressure from the bears intensifies. If this is the case, then token could return to levels around $108.23.
If demand resumes for SOL, however, then the price could rise up to $136.62. If this price level is breached, the value of SOL could rise to $182.64.
Some Facts about Solana in Honor of the 5th Anniversary Of The SOL Block Chain
On March 16, 2020 five years ago one of the most popular and largest blockchains was launched, Solana.
We’ve put together the most interesting SOL facts to celebrate Solana’s 5th birthday.
1. Solana Blockchain Launched in the Middle of COVID-19 Pandemic
Anatoly Yakovenko is a former Qualcomm Engineer who created Solana. The whitepaper of the project was presented at that time. The main objective of the project was to address the scaling issues with existing blockchains.
On March 16, 2020, the first block of the SOL Blockchain was mined. By then the COVID-19 Pandemic nearly had the entire world under its control.
2. The origin of the name
Solana is named for Solana Beach, California. Yakovenko worked near Qualcomm and lived in this area.
3. Solana Is Powered By A Unique Consensus
Solana is the first blockchain to launch with a Proof-of-History consensus. The technology increases transaction speed by using cryptographically secure timestamps.
4. Solana Has Processed More Than 408 Billion Transactions Since Its Launch
The project team estimates that the number of transactions Solana has processed since 2020 is over 408 billion. There are currently more than 1300 validators on the SOL Blockchain that keep it running and process transactions.
The theoretical throughput of Solana is 65,000 Transactions per Second (TPS). The SOL Blockchain has yet to achieve such a number. The blockchain can handle 2,900 TPS at its maximum, 46 times more than Ethereum.
5. Daily active users’ record
Solana set a new record for daily users on November 18th 2024 with 6.4 millions addresses. Bitcoin Blockchain nor Ethereum have ever reached such a level.
6. SOL is Among the Largest Cryptocurrencies on The Market
The price of SOL at the moment of this writing is $123 and its capitalization exceeds $65. The peak was $125 billion. Solana is now ranked sixth by market capitalization;
7. Solana has its own smartphone
Solana Mobile, a subsidiary of Solana Labs launched its Android-based Solana Saga Smartphone in April 2023. The developers unveiled a brand new smartphone, Solana Seeker, in September 2024. The phone supports artificial intelligence.
8. Solana Blockchain Experiences Occasionally Disruptions
Solana occasionally crashes, despite its success. In September 2021 the largest failure was when, due to a transaction overload, the network went down for 17 hours. The blockchain went down in February 2024 for 5 hours.
9. Solana’s career was almost ruined by the FTX bankruptcy
Sam Bankman Fried and the crypto-exchange he founded, FTX actively purchased SOL tokens. The businessman, along with his platform, invested around $7.4billion in cryptocurrency at one point.
FTX declared itself bankrupt in November 2022 but it is still unlocking SOL wallets worth hundreds of millions. Solana’s capitalization plummeted to $3 billion after the Bankman Fried cryptocurrency exchange collapsed. The project survived despite the predictions of many experts.
