Over the past week, the price of Solana has dropped sharply by 12%. This is mostly due to a large sell-off and a rise in memecoin activity. The price of the cryptocurrency was around $128 on September 4, which is a big drop from its recent highs.
Pump.fun, a site for launching memecoins, has been selling off its Solana shares, which is a big reason for the recent drop. Pump.fun has sold $41.64 million worth of SOL tokens at an average price of $157.50 each in the past week. This includes a recent deal involving SOL worth $1.38 million, which put even more pressure on the market.
The large number of memecoins released through Pump.fun seems to be making Solana’s price problems worse. Luke Martin, a crypto trader, noticed that the token’s rise stopped when the site started pushing a lot of new memecoins. Solana’s earlier upward movement has changed into a more stable state, commonly known as a “crab walk.”
Solana and other altcoins have been affected by Bitcoin’s slow performance, which has made the market even less stable. Bitcoin’s recent drop, almost 18% in the last three months, has led to a wider drop in the cryptocurrency market, which has caused Solana’s price to drop 22%.
In the future, Solana may feel better if it gets approval for a spot exchange-traded fund (ETF) in the US. Brazil approved its first Solana ETF on August 7. There is now talk that the U.S. might do the same by the end of 2024. Like Bitcoin’s spot ETFs, this kind of approval could give the market a big boost and possibly bring in more institutional investment.
