The market value of Solana dropped 15% on Tuesday as its downward trend continued. The platform’s financial decline links with weaker operating trends between core developers and users who own the platform. Also Solana platform saw trading activity drop. Investors wonder if SOL will return to its value soon or if it is heading toward additional value erosion.
Recent performance results show the Solana platform has lost its user base momentum in recent months. Solana-based meme coin values decreased from $25 billion in January to $8.3 billion at current market levels.
TokenTerminal reveals Solana experiences major user decline as their active user numbers drop from 37 million in Nov 2023 to 17.8 million. The strong decrease indicates that fewer people are using the network today. The workforce of core Solana developers has decreased from 86 in August 2018 to only 24 current developers. More recent development changes show only 32 written codes or commits as recorded by blockchain.
Fee transactions on the network decreased at the same rate. Daily transaction fees that Solana produces now stand at $1 million while they routinely reached $44 million earlier this year. Fees spiked this year because of the Official Trump meme coin launch but lost popularity afterward.
Solana’s DEX Trading Drops 30% Amid Investor Uncertainty
The problems Solana faces affect its decentralized trading platforms as well. Raydium and Orca DEX handled $17 billion in trades across seven days while their Solana-based trading activity decreased by 30%. The reduced trading activity happens after a chain of fake coin removal scams damaged Solana’s meme coin marketplace trust with investors.
People wonder if Binance plans to sell its Solana holdings based on the observedDecreased network usage Public insight reveals that Wintermute bought SOL from Binance before selling it. Wintermute’s blockchain activity shows it removed $40 million worth of SOL from Binance before further unlocking starts. Market participants assume this indicates Binance sells part of its Solana holdings now.
The Solana network will introduce 11.2 million tokens for market circulation on March 1. When a platform issues numerous tokens to users it weakens market value since new tokens reduce total worth.
The market charts show Solana may reverse its trend soon. Solana dropped from its January peak of $300 to hit $140 on the market. The coin fell substantially after breaking support at $170 and creating a pattern known as a double top.
Solana Faces Bearish Signals as Key Levels Approach
The model projects that a death cross pattern between the 50-day and 200-day moving averages signals another fall in Solana’s market value. The market has shown major price plummets when this selling pattern takes place in cryptocurrency markets.
Current Solana market conditions show a heavy oversale because its Relative Strength Index stands at 24. SOL reached this degree of value during July 2023 creating a major rebound afterwards. The percentage price oscillator (PPO) has reached -8.57 where market reversals often occur.
Short-term Solana evaluation shows a negative trend toward the important support zone at $100 according to market specialists. The crypto market may shift when SOL successfully breaks past $170 resistance and returns to it afterward. The negative market forecast will end and market recovery may begin if SOL stays above $170.
This news is republished from another source. You can check the original article here
