Solana (SOL) prices dropped nearly 5% on Monday to around $55 after the asset’s blistering 40% weekly surge. The cooldown comes as rivals like Filecoin (FIL) and Polygon (MATIC) outperformed the broader crypto market.
Solana skyrocketed last week from under $40 to over $50, marking its first time trading above that key level since May 2022. Experts attributed the powerful rally to a short squeeze and renewed institutional interest.
But Solana cooled off on Monday even as Bitcoin held steady above $36,800. Instead, alternative layer 1 blockchain FIL gained nearly 10% on the day, while Ethereum scaling solution MATIC jumped over 6%.
The divergent moves highlight traders rotating into select altcoins that have lagged Solana’s explosive run. FIL gained on hype around Protocol Labs’ Istanbul event, while MATIC benefited from Ethereum’s boost after BlackRock’s ETF filing last week.
Cosmos’ ATOM token also climbed nearly 10% as interoperability solutions like Cosmos trended upwards. Traders seem to be taking a breather on Solana after its blistering surge and seeking out fresh opportunities in yet-to-pump altcoins.
After a bruising crypto winter, signs of life are emerging across various assets rather than just in Bitcoin. However, analysts caution that sustained upside still relies on macroeconomic factors like inflation and interest rates continuing to improve.
