- Solana price has been in a strong bearish trend in the past few weeks.
- Solana’s DeFi TVL has plummeted from over $11b to $487 million.
- Active wallets and new accounts have plunged.
Solana price has been in a strong downward trend in the past few weeks amid significant ecosystem woes. SOL was trading at $13.16, which was the lowest level since November 23rd. The coin has plunged by over 65% from its highest level this month. Other coins in its ecosystem like Serum’s SRM and Bonfida’s FIDA have also plunged.
Solana TVL plummets
Solana is a leading blockchain project that has been used widely to build web 3 projects. It has been used in industries like Decentralized Finance (DeFi), gaming, non-fungible tokens (NFT), and decentralized autonomous organizations (DAOs).
Solana has over 1,875 validators and 1,206 RPC nodes around the world. SOL, its coin, is one of the biggest in the world. According to SolScan, the circulating supply of SOL is over 534 million and has handled over 118 million transactions on record.
Solana’s DeFi ecosystem is made up of leading ecosystems like Raydium, Serum, Orca, Lifinity, and Orca among others. In the past few months, the total value locked (TVL) of the network has dropped from more than $12.2 billion to the current $487 million.
Read more about how to buy Solana.
At the same time, Solana’s NFT ecosystem has been in a strong downward trend. According to CryptoSlam, the total volume of Solana NFTs dropped from a peak of $311 million to just $55 million in November. In September, the network’s NFT transactions were over $129 million.
As a result, most statistics in Solana’s network have been relatively weak. According to SolScan, network fees have crashed close to its all-time low. As shown below, the number of active wallets in Solana and new token accounts have been in a strong downward trend.
Solana price has been in a strong bearish trend because of the ongoing FTX crisis. It was one of the biggest platforms that had exposure to FTX and Alameda Research. Indeed, Serum, one of its biggest DeFi platforms crashed this month.
Solana price forecast
The four-hour chart shows that the SOL price has been in a strong bearish trend in the past few days. It has retreated by over 65% from the highest level this month. The Average True Range (ATR) has been in a strong downward trend.
Solana has formed a small, inverted head and shoulders pattern. Therefore, there is a likelihood that the coin will rebound in the coming days. If this happens, the key resistance level to watch will be at $20.
