The Market Is Hot, But Solana Isn't - Data Explains Why SOL Price Is Lagging
SOL price has been in a downtrend for 3 months, but news feed and recent events could trigger a reversal.< /p>
Altcoin Watch
Solana (SOL) has been trending steadily lower for the past 3 months, but some traders believe it may have hit a low of $26.80 on October 21st. Lately there has been a lot of speculation about the causes of the underperformance and some analysts are pointing the finger at competition from Aptos Network.
Solana price at FTX, USD. Source: TradingViewThe Aptos blockchain was launched on October 17 and claims to handle three times more transactions per second than Solana. Yet after four years of development and millions of dollars in funding, the Layer 1 smart contract solution's debut hasn't been impressive.
It is essential to point out that Solana currently holds a market capitalization of $11.5 billion at the nominal price level of $32, which ranks it the seventh largest cryptocurrency excluding stablecoins. Despite its size, SOL's year-to-date performance reflects a lackluster decline of 82%, while the broader global market capitalization is down 56%.
Unfortunate events had a negative impact on the price of SOLThe downward trend accelerated on October 11 after a leading decentralized financial app on the Solana network suffered a $116 million hack.
The Mango Markets Oracle was attacked due to the low liquidity of the platform's native Mango (MNGO) token which is used as collateral. To put that into perspective, hacking accounted for 9% of Solana's total value locked (TVL) in smart contracts.
Further negative news emerged on November 2 when German data center operator and cloud provider Hetzner began blocking the crypt...
SOL price has been in a downtrend for 3 months, but news feed and recent events could trigger a reversal.< /p>
Altcoin Watch
Solana (SOL) has been trending steadily lower for the past 3 months, but some traders believe it may have hit a low of $26.80 on October 21st. Lately there has been a lot of speculation about the causes of the underperformance and some analysts are pointing the finger at competition from Aptos Network.
Solana price at FTX, USD. Source: TradingViewThe Aptos blockchain was launched on October 17 and claims to handle three times more transactions per second than Solana. Yet after four years of development and millions of dollars in funding, the Layer 1 smart contract solution's debut hasn't been impressive.
It is essential to point out that Solana currently holds a market capitalization of $11.5 billion at the nominal price level of $32, which ranks it the seventh largest cryptocurrency excluding stablecoins. Despite its size, SOL's year-to-date performance reflects a lackluster decline of 82%, while the broader global market capitalization is down 56%.
Unfortunate events had a negative impact on the price of SOLThe downward trend accelerated on October 11 after a leading decentralized financial app on the Solana network suffered a $116 million hack.
The Mango Markets Oracle was attacked due to the low liquidity of the platform's native Mango (MNGO) token which is used as collateral. To put that into perspective, hacking accounted for 9% of Solana's total value locked (TVL) in smart contracts.
Further negative news emerged on November 2 when German data center operator and cloud provider Hetzner began blocking the crypt...
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