While cryptocurrencies like Binance Coin and Ethereum saw nice price increases of over 11% and 5% this past week, Solana experienced a large double-digit percentage decline in its value. Solana and Avalanche were the only two of the top 15 largest cryptocurrencies to lose over 12% during the last seven days.
The crypto market was very volatile, with total trading liquidations of over $300 million in just the past 24 hours. Over $220 million of that came from traders being forced to exit their “long” positions at a loss when prices dropped.
Solana was hit hard by this volatility as traders with over $10 million worth of “long” bets got liquidated. This caused a wave of selling that pushed Solana’s price down towards the $100 support level.
Data shows some worrying trends for Solana’s on-chain activity. The number of active user addresses on the network has dropped nearly 30% from over 1 million down to around 691,000 recently. Trading volume has also decreased by almost 20% according to CoinMarketCap. This declining user activity and interest seems to be contributing to Solana’s falling token price.
The effects have spread to Solana’s meme coin ecosystem too. The leading Solana meme coin BONK has declined over 15% this week. And dogwifhat (WIF), which hit new all-time high prices just last week, has dropped almost 30% from those highs.
