Published on augustus 21, 2024, 12:41 am
Image source: Fox News
```json [ { "TLDR": "SOL token struggles to break above $150 despite network growth, with memecoins and pump activities losing momentum. Memecoin involvement affects SOL demand, while increased fees on platforms like Jito and Raydium impact investor sentiment. Decline in activity across various sectors within Solana network raises concerns about SOL performance. Spot ETF listings for SOL face hurdles due to SEC classification worries." } ] ```
SOL Price Struggles as DApp Volumes Drop, Spot ETF Odds Diminish, and Memecoins Falter
Solana’s native token, SOL (SOL), has faced challenges in breaking above the $150 mark since August 11. Despite displaying consistent buying pressure at the $125 support level, SOL has largely remained stagnant compared to four months ago. Interestingly, despite a surge in network deposits and activity on the Solana platform, this growth has not translated into an increase in SOL’s price. Let’s delve into the factors holding back SOL from surpassing the $150 threshold.
Some analysts suggest that the recent hype around SOL was primarily driven by airdrops, memecoins, and pump activity which were unsustainable. Over the last month, various memecoins experienced significant price corrections – for example, Dogwifhat (WIF) dropped by 38%, BONK fell by 39%, Lido (LDO) declined by 43%, POPCAT plummeted by 48%, and Wormhole (W) decreased by 31%. Notably, pump.fun volume dropped by 44% over the past week according to data from DappRadar.
Data from Dune Analytics reveals that a staggering 98.6% of pump.fun memecoins failed to list on decentralized exchanges due to insufficient liquidity requirements. Yet, investors have seemingly not been deterred as these activities generated $6.3 million in fees over one week. However, industry experts caution against memecoins due to their perceived lack of real value or utility when compared to DeFi tokens.
While memecoin involvement is under scrutiny now as a significant factor influencing SOL demand, it’s crucial to consider other aspects that also impact investor sentiment towards SOL. The Jito liquid staking app and Raydium decentralized exchange have observed increased fees recently. The Solana Network’s leaderboard also includes platforms like Kamino lending and liquidity service and Marinade staking solution alongside Jupiter decentralized exchange with perpetual contracts.
Unfortunately for Solana, there has been a decline in activity across all sectors including DeFi, NFT marketplaces, Web3 infrastructure gaming gambling collectibles within the network recently. Comparatively on BNB Chain top three DApps – Treasure Ship Game Move Stake PancakeSwap – saw a rise of 7% more users during the same period indicating decaying network activity may negatively affect SOL performance.
Furthermore SOL’s price spike beyond $185 in late July partly attributed to expectations of spot ETF listings met some obstacles following concerns raised regarding Solana’s potential classification as a security by SEC resulting in Cboe Global Markets deciding against proceeding with certain forms despite continued dialogues with SEC casting uncertainty over ETF prospects for solana.
In conclusion it is important noted that this article does not offer investment advice Investors should be aware of inherent risks involved in investments Readers are strongly encouraged perform their research evaluate options before making decisions
Original article posted by Fox News
