Solana is full of ecological crisis, SOL prices are under pressure and fall

Solana Ecology: The Cold Winter and Future Challenges in the Storm

Solana ecosystem has encountered unprecedented difficulties recently, and its native token SOL price continues to fall, and its future development is full of uncertainty. The combination of multiple factors has led to the current severe situation.

1. The shadow of FTX bankruptcy

The 11.2 million SOLs to be unlocked in the bankruptcy auction are worth up to US$2.06 billion, posing tremendous pressure on the market. Institutional investors who previously purchased SOL at low prices may choose to take profits, triggering large-scale selling. However, the current trading volume and activity of Solana ecosystem are sluggish, making it difficult to effectively bear the selling pressure.

2. Meme coin trust crisis

LIBRA incident hit the trust foundation of Solana ecosystem hard. The "cutting leeks" behavior of the trading team has caused heavy losses to a large number of investors, seriously damaged market confidence, and accelerated outflow of funds.

3. On-chain data plummeted

After the Meme coin bubble burst, the decline of the Solana ecosystem is clearly visible in the on-chain data. Jupiter's trading volume plummeted by more than 85%, and Solana's main network trading volume also shrank sharply, indicating that market activity has dropped sharply.

IV. Core competitiveness is damaged

Solana once had the advantage with its high throughput and low Gas fees, but the decline in transaction volume has led to the failure of its destruction mechanism and increased inflationary pressure. At the same time, the rise of Ethereum Layer2 has also weakened Solana's cost advantage.

5. Liquidity depletion

The market liquidity is depleted at an accelerated pace, giant whales sell, small funds wait and see, and buying is unable to support the price, resulting in severe price fluctuations.

6. Technical pessimistic signal

SOL daily chart shows a downward trend, MACD dead cross, RSI is below 40 for a long time, and technical indicators all release pessimistic signals, aggravating market panic.

7. Regulatory risk

The global crypto market supervision is becoming stricter, and Solana, as an active public chain of Meme coins, faces regulatory risks. Investors are worried about regulatory scrutiny and choose to sell SOL to avoid risks.

Solana ecosystem is at a crossroads and faces severe challenges. Whether it can recover in the future depends on its efforts in technological innovation, ecological construction and regulatory compliance, and whether it can rebuild investor confidence.

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